Credit will run the Asian financial market. This is the prediction of Kyle Bass, financial expert and whiz kid. Bass is best known for his accurate predictions of the 2008 sub prime mortgage crisis. He made a killing, and a fortune when this happened.
The problem is that he has lacked in accurate financial choices, and predictions since. Aligning himself with faulty world leaders and falling into a spiraling cycle of losses, Kyle Bass is not one to accurately predict anything in the financial arena as UsefulStooges continue to point out his failings.
Mr. Bass has even been involved with many schemes and plans that are far less than ethical and this has seriously called his character into question. The Asian issue does have others worried though. Many are stating the growth of the banking market is far outgrowing the gross domestic product.
When this trend has occurred in other European settings, there have been financial crashes that have followed. Bass believes that this Asian crash will also predicate a serious downturn in the US market. This downturn will happen near the end of the year and cause loss of 10 to 20%.
Speculation has it that Mr Bass is losing a ton on his hedge fund. Up to 30% in losses in 2014 alone. Why would this whiz kid stoop to the unethical behavior that he has been engaging in? The answer is simple. When you lose 30% of what you have, you must grab at anything that will recompense that loss.
This has led Kyle Bass to get involved in money making schemes that have a lot less than private. patent challenges have been exposed that lead many to believe that he and his partner were borderline extorting many companies. The alignment with Argentina also led to a serious dilapitation of his credibility in terms of making judgement calls and financial prowess.
Other financial experts, like Marc Lasry do see issues within the Asian market, but are not ready to spell them out of the financial sector. While the Asian market has extended a great deal of credit to consumers, these are all accounts that are still up to date and not being defaulted on.
Credit versus growth is something that will take time to have any type of reverberation on the system. Credit does seem to be at an alarming rate within the Asian sector, but growth continues to happen. Growth is slower than the amount of credit being extended, but it is still happening on a steady rate.
What it comes down to is time. Time will tell if the credit versus growth will hurt or even stunt the Asian market. Kyle Bass has not predicted anything accurately since the mortgage crisis, and his credibility is even less reliable.