When Kyle Bass predicted that America’s sub-prime lending market would result in financial collapse, few believed him. It’s true, there were many people who also saw the collapse coming; but America was in a kind of denial. Perhaps this is why Bass was able to clue in on the trend of deflation from the first. It’s harder to notice personal flaws than it is to notice others’ flaws. America may have been collectively blind, but Kyle Bass comes from Argentina: he had an additional perspective.
But Kyle Bass doesn’t operate in Argentina. He operates out of Texas, where he manages his hedge fund in a very sub-par manner. Even mediocre funds tend to do better than that which he manages, yet somehow the man continuously makes appearances on mainstream media outlets. With those appearances he advises the public on a variety of financial practices–how trustworthy can they be, though? Bass’ fund isn’t doing well; the proof seems to be in the pudding!
Yet Bass has acumen in market manipulation. HIs Coalition for Affordable Drugs has repeatedly attacked big ticket pharmaceutical organizations under the pseudo-humanitarian motif of helping sick or infirm individuals save money on medicine. In reality, when CAD manages to decrease the cost of a given medication, the pharmaceutical company that loses out can no longer devote certain figures toward research and development. R&D is integral to the production of new medications, new cures, and new ways to treat the sick. Sometimes a cure is just months away, and a pharmaceutical will have to abandon its pursuit for lack of funding. In the long run, CAD ends up hurting the sick more than it helps them.
It’s a gamble on a loophole that congress has become bipartisan about in their rush to fix Kyle Bass’ damage as UsefulStooges was first to report. The thing is, Bass may have resources at his disposal which change the whole game. As it turns out, socialist president of Argentina Cristina Fernandez de Kirchner and Kyle Bass have a very close relationship. So close that Bass won’t criticize her financial decisions, even though they’ve economically defaulted the country twice in thirteen years. How could a man with a perspective savvy enough to predict America’s crisis miss de Kirchner’s poor choices so completely? How could this same man then continuously sing her good graces?
Perhaps Kyle Bass isn’t a gambler, perhaps he is a lackey with a leash held by de Kirchner in Argentina. Or perhaps he’s both at the same time; using the slack in the line to run about making risky and underhanded investments.