Must Watch Kyle Bass Interview: "I Don't Know How I Can Be Long Stocks"

Tyler Durden's picture

The one must watch interview of the week (if not of the year) features Hayman Capital's Kyle Bass. Bass, who correctly called the subprime implosion (and profited handsomely from it) as a iconoclast contrarian to conventional wisdom, tells David Faber that "given my outlook on the world, I don't know how I can be long stocks." Frequent readers of Zero Hedge will notice many comparable themes touched upon in Bass' interview with issues covered on Zero Hedge: the inevitable restructuring of untenable sovereign debt, the nearly $5 trillion in new global debt that needs to be issued just to plug near-term deficits, the joke that was the European stress test and the ongoing insolvency of the European banking system which is times bigger than its US equivalent, the imminent downward revision of Q2 GDP to sub 1%, the Fed's conflicted position as a political authority whose sole purpose now is not to keep inflation and unemployment low, but merely to keep interest rates as low as possible, as even the slightest shift to higher short-end rates will be seen as a black swan, indicative the Fed is losing control over the economy, and ultimately the futility of Keynesian theory band-aiding of a world caught in a toxic debt death spiral. In short, Bass sees no way the world can get out of its current state absent a huge reset. We agree completely, and needless to say, we are confident Bass will be proven 100% correct, to the chagrin of all the permabullish lemmings who day after day refuse to accept the unpleasant reality. The only caveat: when Bass is eventually proven right, all bets on profiting from this realistic worldview will be off, as the existing financial system will no longer exist.

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Rebel's picture


ZH has an incredibly diverse viewership, united by a fairly widely held belief that we are in a big mess, and there is a reasonable chance of some sort of collapse, potentiality imminent. Beyond that, there is a spectrum of views on how we got here. It is true, that there are many lies being told, but the question is whether they result from an orchestrated conspiracy, or whether they are individual lies of expediency, governed by a 24 hour news cycle. There is a diversity of views as to how much of our problems come from incompetence and how much is an orchestrated plan. 

If I showed you a page with hundreds of dots on it, you could connect some of the dots to create a picture of Mickey Mouse, and then speculate that the creator of the page had in fact created an image of Mickey Mouse, and then obfuscated it with the other dots. Another person looks at the page, and says it is just random dots. Everyone sees the same dots, but they attribute different meaning to them. The fact is, it is hard to discern what the truth really is.

For me, I lean towards the belief that there is not an orchestrated conspiracy, but that what we are seeing is an overall incompetence in government, combined with a series of lies of expediency, and no overarching grand conspiracy.

Turd Ferguson's picture

"For me, I lean towards the belief that there is not an orchestrated conspiracy, but that what we are seeing is an overall incompetence in government, combined with a series of lies of expediency, and no overarching grand conspiracy."

Very well said, Reb. +++++


Cognitive Dissonance's picture


You're presenting a straw man argument. I never said a plane did not crash in PA. I'm saying the "official 9/11 conspiracy theory" story about brave passengers storming the cockpit is the official cover up story. Regardless of if it did or did not happen this way, there are so many problems with the entire cover story that I wouldn't know where to begin. Why did one of the engines wind up nearly 2 miles away and other parts wind up nearly 5 miles away in the PA "crash"? The plane supposedly went down intact. Engines don't bounce 2 miles Turd. They just don't.

Why don't you sit down over a long weekend and actually study the subject rather than pick and choose information that confirms your bias and then stop. The offical 9/11 conspiracy story has holes wherever you look and just because some things can't be explanied doesn't dissmiss the fact that the vast majority of the offical story makes absolutly no sense whatsoever.

What you are doing is pointing to small things that no one can explain without an honest and independent investigation and your saying "Well, since you can't explain this your wrong on the entire argument". This is bullshit. The government has told us a story. It is they who must prove it and they have not. And you would find this out if you did your own independent investigation rather than pick small items that can't be explained and then rest easy knowing that your worldview remains intact.

So you believe you government did not lie about 9/11? That other than some cover up, everything they told you is true and you accept this without investigation? Turd, you're being taken for a long ride on the short bus by the government. Enjoy the ride or demand you get off. But don't accept something simply because it's too much of a cognitive dissonance to look carefully.

BoeingSpaceliner797's picture

Amen CD.  But waking up seems more and more to me very much like recovering from a physical addiction.  The addict must want to recover for any meaningful progress to occur. 


Two thumbs up to you for continuing to press the matter daily.  From what I've seen over the last 2 years, most would rather remain addicted to lies, coverups and beliefs that WE continue to elect incompetents (who then appoint fellow incompetents).

Cognitive Dissonance's picture

I agree. This is why I spent a significant portion of my 5 part series "Welcome to the Insane Asylum" discovering the similarities between addiction, the Stockholm Syndrome, spousal and child abuse and denial in the population.

BoeingSpaceliner797's picture

Time for a re-read of that piece.  Did you have to make it a five-part-er?  j/k.  Thank you for committing to paper/electrons.

Turd Ferguson's picture

CD, I hope you know that I very much enjoy your analysis and posts. I'm not trying to pick a fight. In this case, however, please don't patronize me.

Just because I am unwilling to accept the idea that the extraordinarily incompetentUS government (our government) willingly killed 3000 citizens to start a war does not make me someone who "accept something simply because it's too much of a cognitive dissonance to look carefully."

My question for you is this: If you truly believe what you claim to be true, if your government is responsible for the deaths of 3000 of your fellow citizens, what are you personally doing to bring about justice for the victims? And don't give me this crap about postings on the internet and message boards and explanations of your theories to your neighbors. If you truly believe that your government is this inherently evil, it is your obligation as a citizen to do everything in your power to overthrow it and bring the perpetrators to justice. The proof that you truly believe the "truther" version of events lies in your actions, not words. What actions are you taking? If none, then you are every bit as guilty as Dick Cheney. You are an accomplice after-the-fact. An unindicted co-conspirator. If your neighbor dies under mysterious circumstances and later you come to believe her husband murdered her, is it not your obligation to do everything in your power to bring the husband to justice? If you have evidence of his guilt yet choose not to act, instead just gossiping about your evidence to your friends, aren't you then complicit in the crime? 








RichardENixon's picture

I've asked that question of 911 inside jobbers many times and haven't heard a convincing answer.

jakoye's picture

Ding, ding, ding!! We have a winner.

Nice post.

Cognitive Dissonance's picture

You keep bringing in straw man arguments. I never said why the government did or didn't kill three thousand people during 9/11 to start a war. I said the government has lied to us about what happened in 9/11. It appears you have a set of beliefs about things and you keep trying to label me with them. Let's stick with the fact that the government has told us a theory about 9/11 that is full of holes a mile wide and it is their responsibility to prove their theory. They have not done so at all. 

And what I am or am not doing has nothing to do with those hole in the government theory. But to directly answer your question, I would be insane to explain exactly what I am or am not doing to bring this insanity to a close, particularly if it is or were "unlawful". Sorry but mama didn't raise me to be that stupid. But I am doing much privately. After a year on ZH, after comments on over 2500 articles and contributing over a dozen articles myself, if you can't take me at my word, then there is nothing I can say to change your mind.

Publicly I became an extremely active local "activist" working on local issues within my county and community. This all came about after I learned the truth late in 2002. I am putting my back and shoulder where my mouth is.

But by the same token, since you are so certain that your government and FED is behind the wholesale destruction of the social and economic viability of America, what are you doing to stop this financial insanity? It is even more corrosive and deadly than "just" the killing of three thousand American citizens during 9/11 when you consider the collapse that's coming. Millions will suffer directly and for a long time. There will be hundreds of thousands of deaths from the coming wars, famine and social dislocations. Look at all the "extra" deaths that have been (government) documented as arising from the great depression. 

So what are you doing? As a citizen, you must fight this fascism.

jakoye's picture

No. The accepted truth does not need to be proven, because people already believe in it. They've already seen the "evidence" and the accepted truth makes sense to them. It is peddlers of conspiracy theories such as yourself, who claim that the accepted truth is, in fact, a lie, that need to PROVE their alternative theories are the actual truth.


Cognitive Dissonance's picture

Wow, just a big fat wow on the big twisted strawman argument along with the "accepted truths don't need to be proven because they are accepted" idiocy.

Wow. Your intellect is simply blinding little strawman.

Hephasteus's picture

The earth was the center of the solar system was the accepted truth during copernicus's day. It was accepted as the truth and unquestionable because it was enforced by a brutal religious regime who felt it was a good idea kill disention with something lethal.

Since the world is a world of force. The accepted truth is nearly always wrong but exists through conformity and force. People aren't stupid. They are just abused to stupidity. Because a persons percieved ingnorance and self valuation of intellect is directly porportional to their willingness to engage in combative debate. Just as persons confidence in his ability to defeat an opponent in physical combat will dictate his actions.

Accepted truths give power and perception to someone and are usually defended through every means possible. Control is mostly achieved through chiron. Which is original woundings in a specific domain followed by repeated continual focus of wounding by the powers that be. Like when you stab a guy in the gut and then stick your hand in there and pinch stuff. It's a great system because the powers that be can always outgang and overpower you in that regaurd without a herculean effort on your part. And people are conditioned to become aware of other peoples chironic actiivty and mindlessly and subconciously attack it without explanation of what it is there for. The problem is that the powers that be are so much better at hurting us than we are at hurting them employing nearly every kind of chironic wounding to everyone to maintain control the people get confused and never seem hit on the sweet spot and simply mindlessly play out thier own chironic wounding to everyone thinking it works on everyone as well as it works on you.

Just like world war II. The american military couldn't focus on supply lines of oil because we had millions of barrels of oil chugging out of texas. It was absolutely NO problem for us and we couldn't see our opponents problems because we couldn't get out of our egoic expression of the thing.

Chirons are

Aries Self loathing

Taurus Lack of comfort and security

Gemini Pain of intellectual capacity

Cancer Self love, giving constantly to others and neglecting yourself.

Leo lack of attention

Etc etc.

It goes on and on. But like I said in another post there are energy aggregators. A sufficiently senstive open person is able to be overpowered with these chirons at will and a supply of pain is always on tap. You take a 1000 people starving off in a desert in the africa, bottle it up and flood someone in america with it and it will fuck them up big time.

You take 20,000 children ridiculing a deformed child and pump it into person right before she goes and visits a plastic surgery and the bitch is going to buy nose and boob job.

You take 50 kids being locked in closets and bathrooms when their mom is mad at them and pump it into hyperactive 12 year old in New Jersey and you are going to have a kid that demands so much attention that you will harm them badly psychologically trying to combat it.

God employs perfect sadism to achieve his goals. As long as you are senstive enough and able to confuse yourself and distort your situation and you are being pumped this junk you won't be able to discriminate the group pain energy from your own.

Chiron is unhealable but I'm not sure if there has to be enough constant severe damaging situations going on to keep it working or if it can be bottled up and stored. But the supply of 10 to 15 percent of the population being emotionless sociopathic damagers might have to be present on the planet for it work.

chrisina's picture

Well said.

Never ascribe to malice that which is adequately explained by incompetence.

Napoleon Bonaparte


The incompetence of central bankers, governments and especially those who advise them, neoclassical economists, has been documented over and over again:

. they didn't foresee this crisis

. they thought we'd have a V shape recovery

. they thought unemployement would max at 8.5%

. they thought pumping money into banks would "multiply" itself into many more loans to households and businesses

. they thought the critical issue was liquidity, when it's insolvency

. they thought it's a cyclical recession when it's secular

and the list goes on and on...

Civilizations have collapsed over and over again in the past and it's always been because of the incompetence of the elites at the helm, because they were incapable of abandoning deeply entrenched but ultimately destructive beliefs. This time those destructive beliefs are encapsuled in what has been tought and is still being tought to generations of economists, MBAs and other financial advisors : that there are no limits to exponential growth, to leverage, that economies are always in equilibrium, that humans are rational... the foundations of neoclassical economics, the bankrupt dogma of our time. 

So maybe this time is different, this phenomenal display of incompetence is all part of a grand nefarious plan to install a new socialist world order, that it's all faked and instigated by powerful puppet masters who are engineering our collapse in order to gain absolute control over the lives of all human beings...




ColonelCooper's picture

Rebel, you are one of the wiser posters here.  Well said. 

fiftybagger's picture

" Maybe I'm just a Kansas hayseed, another dupe who's been fooled by the MSM and the military/media/industrial complex"

You should have stopped right there because you just hit the nail...

DavidC's picture

I'm not sure whether the points being made here are suggesting a conspiracy or not and given that ZH is not a forum for 9/11 conspiracy theories I'm reticent to add!

However, all I can say is that on the day, and on subsequent viewings, the WTC building 7 collapse (notwithstanding ANYTHING else of the day) looked and looks, to me, totally unnatural, particularly as it wasn't directly hit.


Turd Ferguson's picture

Dave: The building was mortally damaged by internal fires and the collapse of WTC 1 & 2. Ultimately, its structural integrity was compromised and it collapsed. 

jakoye's picture

Okay, so it wasn't cellphones they used, it was the "sky phones" on the plane. My mistake.

However, your contention is that there were no calls AT ALL, sky phone or no. I think that's a pretty absurd contention. Do you realize how many people would have to be collectively lying (without ONE leak!) in order to support your conspiracy theory that these calls from Flight 93 never happened? It boggles the mind.

Of course, you have to have an actual sound mind in order to grasp this and, in my experience, conspiracy theorists do NOT have sound minds. They're mentally sick people suffering from a persecution complex along with possessing enormous egos with an outsized sense of self-importance ("everybody's out to get ME, ME, the all-important ME!"... yeah, right... like the CIA/Trilateral Commission/Elders of Zion ain't got better things to do than to target your dumb, worthless ass).

Yep, Dissonance, I've been on here exactly 2 weeks and in that short amount of time I've discovered all sorts of nutters, from Nazi stooges to fluoride conspiracy theorists. And now we've got you, the 9-11 denier... I guess it was only a matter of time before that pile of compost was turned on ZH since it's more popular than the JFK assasination among the conspiracy set. Thanks for revealing yourself as one of the kooks whose posts can be safely ignored in the future.

Cognitive Dissonance's picture

I haven't proposed any theories. All I've said is that the "official 9/11 conspiracy theory" is full of holes and impossible. And I notice you keep changing the subject. Why were we told the passengers used cell phones when they couldn't and didn't? Why did one of the United engines land two miles away and other debris up to 5 miles away when the official theory says the plane went down entirely intact with both engines attached and powering the plane?

Yes, I understand facts might be inconvientent but try anyway.

jakoye's picture

So the story is that two cellphone calls were made, while 35 airphone calls were made. Even if your theory is correct that those two cellphone calls never went through, there's still the small matter of 35 airphone calls. Do you deny that those were made?

As for your engine conspiracy, Popular Mechanics (whom I trust just a bit more than you or your conspiracy theorist buddies) puts that lie to rest:

"Claim: One of Flight 93's engines was found "at a considerable distance from the crash site," according to Lyle Szupinka, a state police officer on the scene who was quoted in the Pittsburgh Tribune-Review. Offering no evidence, a posting on claimed: "The main body of the engine ... was found miles away from the main wreckage site with damage comparable to that which a heat-seeking missile would do to an airliner."


FACT: Experts on the scene tell PM that a fan from one of the engines was recovered in a catchment basin, downhill from the crash site. Jeff Reinbold, the National Park Service representative responsible for the Flight 93 National Memorial, confirms the direction and distance from the crash site to the basin: just over 300 yards south, which means the fan landed in the direction the jet was traveling. "It's not unusual for an engine to move or tumble across the ground," says Michael K. Hynes, an airline accident expert who investigated the crash of TWA Flight 800 out of New York City in 1996. "When you have very high velocities, 500 mph or more," Hynes says, "you are talking about 700 to 800 ft. per second. For something to hit the ground with that kind of energy, it would only take a few seconds to bounce up and travel 300 yards." Numerous crash analysts contacted by PM concur."

merehuman's picture

Or maybe you should do some research jacko

jakoye's picture

Research conspiracy theories? Nah, thanks. There's enough tin foil hat wearin' wackos busy doin' that tough work.

Rusty_Shackleford's picture

Good vid of Michael Badnarik talking on the subject if interested:

Optimusprime's picture

+1  Read the last chapter of Alasdair MacIntyre's After Virtue.  When discussing the parallels that may be drawn between our times and the time of the fall of the Roman Empire in the West, he points out that when a sufficient number of "people of good will" cease to see it as their duty to maintain the imperium, then the focus becomes more local.  This is the context in which he counterposes Trotsky and St Benedict.  Amazing work.  The "responsibility" to pay taxes, when it loses all moral dimension and becomes simply the choice to avoid government sanction, is a case in point.

merehuman's picture

well then then federal pen best have room for me too. I aint payen no more. Course i aint earn no more either on account them thar green papers aint worth a worken fer ifn bernacle can print them, he cain damm sore pay the bills wid them. Fork you bernadette

haven fun

papaswamp's picture

You can always join the underground economy. Barter...silver (usually pre 1965 coins) is accepted, as well as fresh veggies, tools, ammo, etc..

Lucky Guesst's picture


I did already put an add on the Internet offering to accept coins for payment for the work that my husband does but I didn't think about ammo!!!!

Thomas's picture


Go to a coin dealer, pay cash, and get a receipt. Why the receipt? You may have to sell them on radar at some point and you will want to be able to establish a cost basis. My intention is to not need the receipts.

ColonelCooper's picture

Living in a rural area, barter has always existed to an extent, but is getting as prevalent as ever now.  Some things I've traded for (both ways):

Guns/ammo, dog, brush mower, beef, venison, firewood, tools, butchering, furniture, a small fishing boat, fencing material, on and on and on

I enjoy barter, because it allows people to get rid of stuff they don't need to get stuff they do.  No tax, no system, no squat.  Plus, whoever is on the upside of the trade can usually get some beer, or a bottle thrown in.

boooyaaaah's picture

Someone should start Colonial Script All over again

Pehaps 10 or 20 different scripts

ATM's picture

Just stop filing. It will probably take them 15 years to figure out you what happened to you and not filing is a misdemeanor whereas filing a false return is a felony.

Treeplanter's picture

The question is how soon?  With fresh dollars pumping into the system, it could fake it a while longer.  Or it could go down over night, from just a passing kick at the rotten snag.

DeweyLeon's picture

I thought Faber was going to cry at the end.  I don't know which is more pathetic, our current financial state of affairs or that people like Faber (who should know better) get caught flat footed everytime the truth is pointed out to them. 

casino capitalism's picture

What irriates me is when the cheerleaders try to undermine the messages of the "realists" by pointing out how negative they are.  Faber does that a few times.  I always correct people when they say I am too bearish.  I say I am a realist - watching everything that is going on objectively rather than through rose colored glasses.  We need more realists and less cheerleaders.

greased up deaf guy's picture

agreed. without watching the video yet (it's blocked here at work)... if anyone should know better about calling kyle out on anything, then it's faber due to his "house of cards" special. at the time, he was touting him as one of the few people who saw the housing bubble for what it was and made a proverbial assload of money as a result.

deadparrot's picture

Remember, 95% of people are clueless regarding investments. Sure, everybody you know has some money invested in equities via IRAs and 401ks, but most of them take no actions other than opening their quarterly statements. Americans have been hypnotized by the 20-year bull market to believe stocks always go up over the long term and that they just need to wait until all this silliness is sorted out. Therefore, your bearishness (and I know exactly you feel as I get the same responses) is interpreted as an attack on their sense of financial security.

Steaming_Wookie_Doo's picture

Exactly! I frequently tell folks about the behind-the-scenes in banking and finance. And what a crock it is to hold longterm in this environment. Few can tell me what mutual funds their 401k holds. None can tell me what those mutual funds are composed of, fees, etc. "Someone else takes care of that." The sheer self abnegation, laziness and lack of confront on the subject drives me bonkers. Some folks are going to have a hard wake up call.

deadparrot's picture

Remember, 95% of people are clueless regarding investments. Sure, everybody you know has some money invested in equities via IRAs and 401ks, but most of them take no actions other than opening their quarterly statements. Americans have been hypnotized by the 20-year bull market to believe stocks always go up over the long term and that they just need to wait until all this silliness is sorted out. Therefore, your bearishness (and I know exactly you feel as I get the same responses) is interpreted as an attack on their sense of financial security.

MountainHawk's picture

Perfectly said... very few people have any clue about finance....

Treeplanter's picture

The industry is based on enough fools to operate on long term investment, buy and hold strategy which was proven suicidal a while ago.  They keep the volatility lower and make it easier to sell quickly.  While being played for suckers. I don't have a 401k, IRA, or anything that ties up your money.  With the exception of gold and silver, which is money and is what is happening now.  I'm a bull on miners cause they have a long range bull market ahead, but they are not the only game in town and one day will fade.  Investors are lazy about stop losses.  I hope a lot of people got a little disciplined after 08.  Next time their stocks may not come back in their lifetime.  Even Alfred E. Newman is getting nervous.

fiftybagger's picture

I gave a rant the other day about my company and how screwed up it is.  This guy, (management of course), gave me the typical "you're being too negative" speech.  So I enlightened him.  Negative and positive are just perspectives, they depend on your point of view.  The truth is the truth.  Let me give you an example.  I give you the news that 80 thousand people were just vaporized in Nagasaki.  Is that negative?  Ummm yea, if your family lived there it's about as negative as it gets.  Was it the truth? yup.  How did you take that news if you had a GI in your family who was about to be deployed in the invasion of the mainland?  You threw a party.  Get it?

Conrad Murray's picture

Faber is a smart guy.  Sometimes I wonder if segments like this aren't merely skits put on out of a sense of guilt: "I work for the devil and it's eating me alive.  Let me, this one time, shine truth".  I mean, it's not like Faber doesn't know the man's views ahead of time, and he certainly didn't have any solid retorts prepared.  It was like he said, "Bass, come on and do your thing, and I'll pretend to attempt to present the other side to appease the bosses".

20smoney's picture

Conrad, interesting thoughts.  I often wonder these things too.. i mean are these guys on TV that stupid?

JLee2027's picture

They were oddly passive during the interview I thought. As I said, I think the truth has sunk in...we are in a world buried in debt up to our asses. Best they can say is how well Spain's debt auction went? Huh?

bonddude's picture

And then Bass called it out as a fraud.


impending doom's picture

Is that an ass growing out of your neck there, JL?