Excerpts:
- In 2006, when Americans were flying high on ever-expanding credit and double digit real estate growth, hedge fund manager Kyle Bass came to the conclusion that something was very wrong.
- When the real estate bubble did finally burst, stock markets plummeted and mortgage backed securities fell to pennies on the dollar. Bass and his hedge fund made billions in the process.
- Bass’ foresight was 20/20, and now he has issued a warning so dire that it, like the real estate crisis and recession that followed, is unimaginable for most Americans.
- At some point in the (near) future, the plug is going to be pulled and no one is going to lend anyone any more money. We saw this on a small scale in 2008 [ comment: It was actually 2007, because that is when I went long to short due to the inevitability of a recession.]
- Like the mafia does when debts don’t get paid, our creditors are eventually going to resort to ‘breaking some legs.’...so the tools used to ‘take care of it’ won’t be crowbars or baseball bats, but rather, soldiers, tanks and intercontinental ballistic missiles
In Bass's talk linked above, he says that Japan is going to have a big bond crisis in the next couple years. He says that Europe has not recapitalized their banking system yet. ( Evidently, that's bad) China's financial position is much more precarious than most people realize. Trade is drying up. Demographics are going to clash with unsustainable policies.
He doesn't predict who will be fighting who. You can speculate on that one on your own.
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