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Kyle Bass On The Federal Budget: "I Don't Know How To Fix This"

Tyler Durden's picture





 

Hayman Capital's Kyle Bass is back and cutting through the caustic bullshit that surrounds every waking moment in this kick-the-can world. Dispelling the myth of our 'deleveraging' virtue, with global debt having grown from $80tn to over $200tn in the last ten years alone (a 10.7% CAGR) and the frightening reality of central bank balance sheet growth of 16% per annum, Bass concludes (rightly) that "you can't do this for very long" as governments infinitely leverage and central banks have begun the endgame of open-ended money-printing. Addressing the question of timing, Bass notes that while Europe and Japan are 'perceived' to be 'staying together' there are in fact devastating losses occurring (ask Greek bond-holders) and he firmly believes that "Germany will never go joint-and-several with the rest of Europe." The world sits at a place it has never been before in peace-time - as far as global debt balances and deficits - and that is why the global investing playbook is so hard. He goes on to address the US fiscal debacle, Japan, hyper-levered economies, delayed inflationary outcomes, and worries that the cost-push (lower GDP, higher CPI) prints are just beginning in Europe. Must watch.

 

As a fiduciary, and something all investors should consider - "Given what we see coming, our job is not to lose money!"

 

On Fiscal Cliff: Won't happen - politicians won't fix anything.

On the CBO Budget crisis: As a non-partisan third-party 'accountant', "I can't fix it!"

On Inflation: "It takes time - but it's coming"

On Housing - he doesn't believe housing will go up but has stabilized. "Everyone who ever thought of buying a house, has bought a house" and we need to flush the inventory - which wil take a few years.

On Trading The End of the World: Use Convexity - which is grossly concentrated in Japan

Own anything that is nailed down - productive assets!


 

 


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Wed, 10/03/2012 - 12:47 | Link to Comment tsx500
tsx500's picture

damn it's been a long time since i've seen anything from KB .....   keep it coming  !!!

Wed, 10/03/2012 - 12:48 | Link to Comment Stackers
Stackers's picture

Cant fix stupid

Wed, 10/03/2012 - 12:49 | Link to Comment Long-John-Silver
Long-John-Silver's picture

You beat me to it.

Wed, 10/03/2012 - 12:52 | Link to Comment markmotive
markmotive's picture

Time for fixin' was decades ago.

 

Wed, 10/03/2012 - 12:55 | Link to Comment icanhasbailout
icanhasbailout's picture

Can't fix what's not broken. The system is working precisely as intended - to screw you.

Wed, 10/03/2012 - 13:02 | Link to Comment Pladizow
Pladizow's picture

Oh where have thou been, my long missed man crush!

Wed, 10/03/2012 - 15:35 | Link to Comment economics9698
economics9698's picture

1971 Nixon Bretton Woods, the last time we are at 1.5 to 1 debt to GDP ratio.

Wed, 10/03/2012 - 16:15 | Link to Comment redpill
redpill's picture

I can't decide which fish I love more, Kyle Bass or Mike Trout.

Wed, 10/03/2012 - 16:45 | Link to Comment HoofHearted
HoofHearted's picture

I would vote for a Kyle Bass- Sean Egan ticket over anything else out there. Can we draft Bass and force him to be Pres?

Wed, 10/03/2012 - 18:54 | Link to Comment Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

There should be a vid of Kyle Bass from Americatalyst at any moment now.  He just spoke there at their keynote address, if I remember correctly that schedule.  

NOT IF BUT WHEN | KEYNOTE PRESENTATION BY KYLE BASS

http://www.americatalyst.com/program

Anyone gotta link to the presentation?

Wed, 10/03/2012 - 15:30 | Link to Comment icanhasbailout
icanhasbailout's picture

Somewhere in the triangle defined by my favorite nap spot, the food bowl, and the litterbox

Wed, 10/03/2012 - 16:09 | Link to Comment Peter Pan
Peter Pan's picture

The first step to fixing it is to let it blow up.

Wed, 10/03/2012 - 13:27 | Link to Comment Go Tribe
Go Tribe's picture

We CAN fix it. Send all the Olds a obamaphone and then axe their medicare. Oh, we already did that? Okay, then send them a second obamaphone and tell them it's a healthcare hotline. They can't figure out how to use them anyway.

Wed, 10/03/2012 - 15:55 | Link to Comment ATM
ATM's picture

LOL That's funny!

Wed, 10/03/2012 - 17:21 | Link to Comment max2205
max2205's picture

Rocket Romney wants to put a 15K cap on my deductions....fuck him...douche...I guess I'll vote for the Phone guy

Wed, 10/03/2012 - 15:02 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

It's not rocket science stop spending more then your making there I fixed the budget. No one wants to hear that but that is the simple truth.

Wed, 10/03/2012 - 15:27 | Link to Comment Bogdog
Bogdog's picture

Logic???!!! How dare you?

Sir, you have seriously offended me.

Wed, 10/03/2012 - 15:38 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

lol sorry about that to make it up to you here's a tip Kyle Bass owns a million dollars in nickles they will be soon be worth more then five cents now you too can get in on the action. 

 

Wed, 10/03/2012 - 15:59 | Link to Comment ATM
ATM's picture

Not "soon will be worth more than a nickle". They are worth more than a nickle.

The current melt value of a US nickle is $0.0543312  or 108.66% of face.

Nice move for Mr. Bass.

Wed, 10/03/2012 - 16:27 | Link to Comment Whiner
Whiner's picture

Aren't we at that point when the guy with 24 credit cards is told by his CPA and lawyer that he's bankrupt. He then goes on a credit card financed vacation binge maxing out each card. Then he files bankruptcy. The Bernanke can see bad things inside the PDs that we can't see, so he's maxing out our credit card pumping holiday money into them for their inviolate bonus pools. The guy can do this for about two months before the credit card computer terminates his privileges. Bernanke in concert with ECU and Japan can keep a binge like this one going for a couple of years before EU implodes and blows up PDs. That's why all eyes are on The Fatherland. Auchtung! Enjoy the ride.

Wed, 10/03/2012 - 12:52 | Link to Comment slaughterer
slaughterer's picture

Repeat after me: "BASS KICKS ASS!"

Wed, 10/03/2012 - 13:08 | Link to Comment derek_vineyard
derek_vineyard's picture

as stated in the video----historically war solves this

to the winner goes the spoils and the defeat = default

is there a peaceful solution to this debt is the real question------i fear not

Wed, 10/03/2012 - 15:37 | Link to Comment economics9698
economics9698's picture

Bankruptcy

Inflation

War

Austerity

Pick one.

Wed, 10/03/2012 - 16:01 | Link to Comment ATM
ATM's picture

Those aren't to choose between. Those are outcomes which will all occur.

Wed, 10/03/2012 - 13:09 | Link to Comment derek_vineyard
derek_vineyard's picture

as stated in the video----historically war solves this

to the winner goes the spoils and the defeated = default

is there a peaceful solution to this debt is the real question------i fear not

Wed, 10/03/2012 - 13:47 | Link to Comment Harbanger
Harbanger's picture

Maybe there's an unspoken currency war with the West racing to devalue thru QE.

Wed, 10/03/2012 - 13:05 | Link to Comment Silver Bug
Silver Bug's picture

Kyle bass is a smart man. He is basically saying were screwed.

 

http://ericsprott.blogspot.ca/

Wed, 10/03/2012 - 14:43 | Link to Comment dbTX
dbTX's picture

I like Kyle Bass, but didn't need him to explain that to me.

Wed, 10/03/2012 - 15:09 | Link to Comment vato poco
vato poco's picture

Could somebody PLEASE give me $5 million, so I can have Bass run it for me? Help a brother out! Yo! Obama! Lil' HEPP!!

Wed, 10/03/2012 - 13:52 | Link to Comment dmger14
dmger14's picture

I have been looking for his views for a while myself.  He's probably my top pick for who I listen to on what is going on and where we are headed.

Wed, 10/03/2012 - 16:15 | Link to Comment ATM
ATM's picture

He has his own blog - http://kylebassblog.blogspot.com/

Not updated very often but when he does it's usually something good.

I would also recommend Scott Minerd - http://guggenheimpartners.com/perspectives

Wed, 10/03/2012 - 14:06 | Link to Comment Alexandre Stavisky
Alexandre Stavisky's picture

Utopia is removing $4 trillion in 10 years from US gov't spending?  That wouldn't offset QE3.

That contraction alone would ensure a greater depression than the Great Depression.

What dominoes would it set in motion?

Cascades, and slippery slopes.  Didn't Kashkari oversee some gov't redistribution prior to moving to PIMCO?  Didn't ZH have pics of him building a primitive cabin alone?  Didn't he go a little Viggo Mortenson?

That was many trillions of QE earlier.  Obviously money printing has improved outlook and the financial system is saved and robust.

http://www.youtube.com/watch?v=iE_Gr486eeY

Bass, Sprott, Dalio, Gross are all still making money high near the Ponzi capstone.  But what outcome will enrich, vindicate, and preserve them in their lifestyle?

Too Far Gone.

What if you had been the smartest guy in the room or in the city (of Dresden) and worked very hard securing "anything nailed down" between 1933 to 1945?  Or Nagasaki in the same time frame.  The smartest, most manuoevrable, nimble, and strategically positioned superman woke up to either a Fat Boy or a sky dark with incendiary delivering bombers.

http://en.wikipedia.org/wiki/Bombing_of_Dresden_in_World_War_II

How smart are we now?

Wed, 10/03/2012 - 14:11 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

That was 4 trillion over 10 years, not annually.  And don't worry, it won't happen.  It wasn't long ago and we had 400-500 billion annual deficits.  Now we have to not only provide a safety net but a hammock for people.  Wonder how long it will be before the Obamaphone types get their Obamacar (not Obamacare--they got that too).

Wed, 10/03/2012 - 12:50 | Link to Comment Shizzmoney
Shizzmoney's picture
Kyle Bass On The Federal Budget: "I Don't Know How To Fix This"

Hey, something he has in common with Congress!

Wed, 10/03/2012 - 13:21 | Link to Comment Harbanger
Harbanger's picture

If any politician is basically "unelectable" if they propose or make the hard decisions to Cut spending, who's to blame? 

Wed, 10/03/2012 - 16:19 | Link to Comment ATM
ATM's picture

Human Nature is to blame. We all want free beer and will never vote against it.

Wed, 10/03/2012 - 16:23 | Link to Comment AnAnonymous
AnAnonymous's picture

Human nature is to blame. And we are all american.

Signed: an American.

Wed, 10/03/2012 - 16:28 | Link to Comment akak
akak's picture

Roadside crapping is to blame.  And we Chinese Shitizenism citizens are all roadside crappers.

Signed: a squatting Chinese Shitizenism citizen

Wed, 10/03/2012 - 16:31 | Link to Comment Harbanger
Harbanger's picture

Human nature is to keep repeating history.

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: "If you don't work you die."

Wed, 10/03/2012 - 12:49 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

Like my student loans, oh it's fixable.  I just have to work hard and tighten the old belt to get em payed off.

Let's get to work people. 

Wed, 10/03/2012 - 12:51 | Link to Comment Long-John-Silver
Wed, 10/03/2012 - 13:23 | Link to Comment Red Heeler
Red Heeler's picture

"This is past fixing."

Yes, but the ride has never been smoother.

Wed, 10/03/2012 - 12:51 | Link to Comment PUD
PUD's picture

CASH FOR DUMPSTERS PROGRAM...EITHER FILL THEM WITH CASH OR LEFTOVERS...PROBLEM SOLVED

Wed, 10/03/2012 - 12:53 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

As a fiduciary, and something all investors should consider - "Given what we see coming, our job is not to lose money!"

"Then you should have deposited my money with the bankers, and on my return I would have received my money back with interest!", said Jesus.

Wed, 10/03/2012 - 13:15 | Link to Comment rbg81
rbg81's picture

Well, duh.  Not only should you not lose $$, its good if you occasionally make some.  When you hear such lame advice from a smart guy like Kyle Bass, you know that he too is clueless--which should scare the living shit out of everyone.  We all know the System is ripe for collapse--the real question is how long will the farce go on?  The thing keeping it going is that, aside from massive social unrest, our leaders have no idea what lies on the other side of the Fiscal cliff.

Wed, 10/03/2012 - 13:45 | Link to Comment Monetary Lapse ...
Monetary Lapse of Reason's picture

Don't be stupid... you are confusing the nominal with the real... Kyle means he does not want to lose any real buying power of the money he manages... no doubt he will make money nominally.  

Wed, 10/03/2012 - 14:20 | Link to Comment Raymond Reason
Raymond Reason's picture

Ah, but that was real money.  The funny thing is gold did bear interest, once upon a time, in the form of more gold. 

Wed, 10/03/2012 - 15:40 | Link to Comment Thisson
Thisson's picture

It still does.  Gold hasn't changed. 

Wed, 10/03/2012 - 12:57 | Link to Comment youngman
youngman's picture

I kind of thought he was throwing in the towel......he is into mortgages heavily now.....but it was obvious he thinks we are in uncharted waters...

Wed, 10/03/2012 - 13:09 | Link to Comment Apocalicious
Apocalicious's picture

that's cuz we are in unchartered waters. no one at the helm has a map for this, and their vision is pretty myopic.

Wed, 10/03/2012 - 14:26 | Link to Comment Raymond Reason
Raymond Reason's picture

I was surprised that he said housing has hit bottom.  Might depend upon where one lives. 

Wed, 10/03/2012 - 14:59 | Link to Comment Harbanger
Harbanger's picture

I think we're past the majority of subprime defaults. Banks just aren't giving mortages without a reasonable down payment anymore. Of course location matters but a house like any other asset has a basic value which is at least the price of materials and labor to construct it.

Wed, 10/03/2012 - 15:41 | Link to Comment Thisson
Thisson's picture

Not if the prices of the materials and labor are also inflated!

Wed, 10/03/2012 - 15:54 | Link to Comment Harbanger
Harbanger's picture

They're not inflated now, materials and are labor are relatively cheap now, they are only going to cost more in the future.  You definitely will pay more to build the exact same house going forward.  So the basic value of the house will have to inflate accordingly. 

Wed, 10/03/2012 - 18:20 | Link to Comment blunderdog
blunderdog's picture

That struck me as a bit odd, too.  He has to be assuming that banks/government will prevent the market from clearing indefinitely.

Wed, 10/03/2012 - 13:07 | Link to Comment TheSilverJournal
TheSilverJournal's picture

Absorb the shadow inventory? Housing is going to be devastated when the bond bubble pops.

Thanks to the central planners, a vast amount of resources have been misallocated into housing and housing is now extremely overbuilt.

The new big business is going to be dismantling abondened houses.

Wed, 10/03/2012 - 13:22 | Link to Comment zebrasquid
zebrasquid's picture

Right, when rates go up, the housing crisis will just get going for real.

Imagine affordibility when interest rates reflect real inflation, and are 2x or 3x or more todays...(if you were around in late '70s, you know what I'm talking about).

And this unfolding in an ongoing job depression?

Without hyperinflation, houses could easily go down another 30-50% when rates zoom.

 

Kyle seems to be getting a little lost in the trees trying to find the forest..

 

Wed, 10/03/2012 - 13:30 | Link to Comment youngman
youngman's picture

The thing is that the Feds will NEVER let inflation hit the mortgage market....mortgage rates are going to be 3-5% for years....the Fed buying them all...same as treasuries....no higher rates there either....they really have teken over the "market"....there is no public market anymore....its all the Fed and their cronies....

Wed, 10/03/2012 - 13:56 | Link to Comment TheSilverJournal
TheSilverJournal's picture

ummm...the currency is going to collapse and the printing press will be rendered worthless.

Wed, 10/03/2012 - 14:19 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

That is true.  But they have the ability to manipulate any paper with infinite paper.  I don't see interest rates rising again, ever.  Interest rates will continue to pancake, then the currency will pancake too.

Just like silver---they could make the paper price $5 if they wanted.  But it would make the currency worth less, and then worthless.

Wed, 10/03/2012 - 13:02 | Link to Comment woggie
woggie's picture

i do. why candy of course; until, in 34 days the folks say - no more!

http://youtu.be/DRtHiuC9ppU

Wed, 10/03/2012 - 13:03 | Link to Comment slaughterer
slaughterer's picture

Kyle is good in everything except common equities, where he usually invests in distressed penny stocks and loses his ass.  

Wed, 10/03/2012 - 13:13 | Link to Comment Apocalicious
Apocalicious's picture

yeah, I've never agreed with their pitch as an event fund. coporate securities in general, they tread water. they are a long vol, long the tails, macro fund. convexity

Wed, 10/03/2012 - 16:02 | Link to Comment Pool Shark
Pool Shark's picture

 

 

Yep. See his MTG call: from over $5.00 to under $1.00 in less than 6 months...

 

Wed, 10/03/2012 - 18:26 | Link to Comment blunderdog
blunderdog's picture

You have to be in it to win it.  The difference between a huge wealth-fund and an individual's portfolio is major.

When the amount of money under management is sufficiently great, it actually makes a certain amount of sense to make a large number of small investments which you are confident are going to FAIL just so you have a shot at the one out of a thousand which ends up paying off. 

"Fiduciary responsibility" means you can't just invest in what you believe is best.  Those plays look to me like he's investing FOR the "black swan."  You already know you can't predict it.

Wed, 10/03/2012 - 13:04 | Link to Comment Unprepared
Unprepared's picture

"Own anything that is nailed down"

 

Ok. I just came back from nailing the boat used to transport my gold to the bottom of the river. Am I good now?

Wed, 10/03/2012 - 13:31 | Link to Comment youngman
youngman's picture

I just had sex with my girlfriend ....NAILED her again..

Wed, 10/03/2012 - 13:05 | Link to Comment DavidC
DavidC's picture

Swish. Whoosh. Whee.

Those sound effects on CNBC are so incredibly ANNOYING!

DavidC

Wed, 10/03/2012 - 13:09 | Link to Comment Dr. Engali
Dr. Engali's picture

Everything about CNBS is annoying.

Wed, 10/03/2012 - 13:17 | Link to Comment Apocalicious
Apocalicious's picture

Even Amanda Drury?

Wed, 10/03/2012 - 13:53 | Link to Comment natty light
natty light's picture

Her voice. I could'nt stand her on the telephone, like Mick.

Wed, 10/03/2012 - 17:40 | Link to Comment TWSceptic
TWSceptic's picture

Yes. Annoying that she isn't naked and isn't doing porn.

Wed, 10/03/2012 - 13:05 | Link to Comment Diesel Seven
Diesel Seven's picture

Depressing but true. I liked how he pointed out the mispricing opportunites the the Black-Merton-Scholes model exhibits based on it reliance historical volatility and return data. He also speaks the truth on real assets. Oil, real estate and physical gold is good, but a blended portfolio of brass, copper and lead might be even more valuable given the direction we are headed.

Wed, 10/03/2012 - 13:06 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Talking the book, Kyle knows this is not about fixing anything.

Wed, 10/03/2012 - 14:43 | Link to Comment kito
kito's picture

im astonished he focuses on japan, but doesnt see the end to the u.s. economic system....he cant fix it, but yet somehow its not going to be that bad????? bass frustrates me on this issue...............

Wed, 10/03/2012 - 16:25 | Link to Comment ATM
ATM's picture

He sees pricing disparaties in Japan that he can lever unlike anywhere else at this time. That's all he's telling you.

Wed, 10/03/2012 - 13:08 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

On Inflation: "It takes time - but it's coming"

I had an interesting (on going) conversation this morning with Mrs Cog regarding inflation and hyper inflation. As I see it the problem is protecting yourself from what you expect is coming (at least very high inflation, maybe hyper inflation) without shutting the door to what might happen (a massive deflationary impulse first, then massive inflation) or outright stagflation.

We need to get from here to there without wrecking in between. A very fine line at times.

Wed, 10/03/2012 - 13:15 | Link to Comment MachoMan
MachoMan's picture

Bingo.  You have to hedge both ways, knowing you're going to likely lose your ass on one of the plays.  However, there are a few assets that work in both scenarios...  the key to it all is to deleverage and then fight a one front war against inflation.

Wed, 10/03/2012 - 13:27 | Link to Comment sdmjake
sdmjake's picture

Delever and fight a one front war on inflation:  that might be the second-best, succinct advice i've read on ZH!

Wed, 10/03/2012 - 13:33 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"the key to it all is to deleverage and then fight a one front war against inflation."

It's amazing how few people are doing this, and are essentially taking the one way long bet period end of story.  That might very well be a good bet, but that sword o' damocles is looking pretty fucking hefty as well.  

Wed, 10/03/2012 - 15:50 | Link to Comment Thisson
Thisson's picture

Or you can enter into a synthetic leveraged straddle where you profit whether we get inflation or deflation.

For example, you could buy long-term, far out of the money equity calls and profit from hyperinflation. 

Then you need a comparable levered bet that pays off in deflation.  I dunno, maybe a levered instrument that pays off when debts default (CDS?)?  Short Oil futures?  Long equity options on gold producers/junior gold miners? 

Wed, 10/03/2012 - 16:27 | Link to Comment ATM
ATM's picture

The one problem with your startegy is also the elephant in the room - counterparty risk.

That synthetic shit might work really well for a while but it's a dangerous game of chicken. 

Wed, 10/03/2012 - 13:27 | Link to Comment Winston Churchill
Winston Churchill's picture

C,D.,

We can also have a deflationary crash followed by high/hyperinflation..

I'd say the odds are fifty fifty, if the derivatives crumble first.

You need cash(basket of cuurency's) in the deflation and PM's in the inflation.

No counter party paper. at all in either case.

Wed, 10/03/2012 - 15:51 | Link to Comment Thisson
Thisson's picture

Deflationary Crash --> hyperinflation is known as the Ka-Poom theory, I believe.

Also, fyi, PMs are a poor hedge for *inflation* - they are a better hedge against deflation and declining real interest rates.

Wed, 10/03/2012 - 15:59 | Link to Comment akak
akak's picture

 

Also, fyi, PMs are a poor hedge for *inflation*

Where do you deflationists get this shit?

Are you REALLY telling us that the precious metals are becoming cheaper, in real terms, over time?  Because that is the logical conclusion.

 

 

Wed, 10/03/2012 - 13:07 | Link to Comment Dr. Engali
Dr. Engali's picture

"We are not going to a gold standard any time soon" I wonder how he thinks the currency survives...if he does.

Wed, 10/03/2012 - 13:14 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Accepting Gold and the implied Gold Standard means radically changing one's world view. KB, while a sharp (at times contrarian) cookie, is still stuck in his. He still "believes" in the system.

One simply cannot play in the sand box if one does not believe the sand box is there or will remain there. This is the force behind the momentum of normalcy and confirmation bias.

Wed, 10/03/2012 - 13:19 | Link to Comment LawsofPhysics
LawsofPhysics's picture

there is no spoon neo.  some people's cognative dissonance is so unfuckingbelievably large it explains their succes in the modern sandbox perfectly.

Think the game is rigged.  Don't play.

Now about that status quo and mob mentality...

Wed, 10/03/2012 - 13:22 | Link to Comment Apocalicious
Apocalicious's picture

I think you can realize the game is rigged, but still believe you're the MIT blackjack team. Hence, maybe it's perfectly rational to play over certain time frames, until such time as you think the odds no longer make sense to participate.

Wed, 10/03/2012 - 13:39 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"Hence, maybe it's perfectly rational to play over certain time frames, until such time as you think the odds no longer make sense to participate."

Perhaps rational, but ethical?  It seems pretty settled at this point that feeding the beast is probably the worst thing you can do as an aware human.

Wed, 10/03/2012 - 14:05 | Link to Comment sdmjake
sdmjake's picture

I'm sick of watching them break up

Every time some bird brain puts us down

Making jokes on the radio . . .

Guess it helps them all drown out the sound

Of the crumbling foundations

Any fool can see the writing on the wall

But they just don't believe that its happening.

 http://www.youtube.com/watch?v=QgaIAzWW2zc

 

Wed, 10/03/2012 - 14:20 | Link to Comment BandGap
BandGap's picture

I did not get that impression at all. I think he's remaining calm and direct, while at the same time telling us that this is heading into the shitter.

If my kid came to me with a broken toy and I told him I couldn't fix it, he would realize the next stop was the garbage can.  We're heading into the garbage can.

Wed, 10/03/2012 - 15:26 | Link to Comment Urban Redneck
Urban Redneck's picture

The problem is precisely not changing ONE's but rather changing EVERYONE's mind.  If a gold standard is not internationally accepted by governments, and trade is not balanced, then first fool through the hard money door is the sucker quickest separated from his wealth.

Wed, 10/03/2012 - 16:30 | Link to Comment ATM
ATM's picture

He doesn't think it survives, he just doesn't beleive that the end is close by. Do not discount the power of printing money to forestall the inevitabe. It will work until it doesn't.

Wed, 10/03/2012 - 13:13 | Link to Comment Jim in MN
Jim in MN's picture

You know, maybe it was the blow to the head I took yesterday but it just now occurs to me to connect one of the most important books I've ever read to the most important blog I read, and to the most critical system we humans have (AKA the economy).

In the lovely but out of print 'World Population and Human Values', Jonas and Jonathan Salk lay out the global population and system analysis in a series of simple graphs with short text facing each one.

I won't go into their 'human values' angle (but it's connected to resource scarcity so it's kind of interesting).  What I will note is simply the following:

1.  Populations in a closed system exhibit a sigma or S-curve.

2.  Global human population is beginning to plateau at the high end of the S-curve.

3.  The rate of change in population is a single spike on a graph.  It is basically zero until take-off, then spikes to a few percent, then falls back to zero at the high-population plateau.

4.  The period of this spike in growth rate is from 1750-2100.  This is 350 years, only about 11 generations of humans (!!!).

5.  This spike has never happened before and will never happen again in human experience (all else being equal, i.e. we stay on Earth and don't destroy it....much).

So, how about this: We may or may not be in a Peak Oil crisis, but we are definitely in a Peak Growth crisis that we can't see.  All the credit-based economic growth is predicated on there being no terminal point to growth.  But we've inflected on population growth and there's no going back on that.  China is getting older fast now.  What if...what if the idea that debt principal never has to be paid back, which is fundamental to high leverage, is beginning to collide with a terminal steady state a few decades from now in which the books really will have to balance?  In all sorts of ways markets and behavior could have now turned, as the growth turns.  The 'echoes' of the future reckoning show up in the form of expectations and market dynamics reacting to these changes.

So control of the endless growth, so critical to the global elites, is already falling apart.  It is shredding from the future and from centrifugal forces from the economic periphery (the 'losers' wherever they may be in a geographic sense).  It is also shredding because of the corruption, murder and lies embedded within the core itself.

Here's one way to look at it...http://www.census.gov/population/international/data/idb/worldpopchggraph...

 

Just a thought.  Or two.  Have a nice day!

Wed, 10/03/2012 - 13:15 | Link to Comment Jim in MN
Wed, 10/03/2012 - 13:48 | Link to Comment prains
prains's picture

thanks Jim

Wed, 10/03/2012 - 16:33 | Link to Comment ATM
ATM's picture

I think the Mayans put it on a calendar too.

Wed, 10/03/2012 - 13:21 | Link to Comment ebworthen
ebworthen's picture

Damn people having sex, and more sex.

Yes, huge spike in population with the advent of petro-agriculture.

Mechanization and oil based fertilizers and pesticides, hybridization, monoculture, yields per acre through the roof as arable land is used for factories to make plastic crap and house the hordes.

The inevitable outcome is a population event (massive reduction).

There will be sound and fury about the cause, the rights and wrongs, the parties and nations, the grievances and catalysts - but there will be only one underlying cause - too many people/not enough resources.

Wed, 10/03/2012 - 16:08 | Link to Comment newworldorder
newworldorder's picture

Its all about OIL and CHEMISTRY.  Once we experience significant oil supply decline, we will further endager the planet to get the last drop - untill we have significant population decline due to food, water and war shortages.

Wed, 10/03/2012 - 14:45 | Link to Comment Ham-bone
Ham-bone's picture

Population from 1million souls in 10k BC to 7+B today...but check out the rate of doubling world population ramping dramatically faster.  Big however, the doubling time from 1975 to guesstimated 2030 completely breaks the 600yr old pattern.  Funny to note the last time the doubling rate slowed, as it is now, was a period called the "dark ages"...interesting.

10k bc - 1 million

1k bc - 50 million

500 bc - 125million

300ad - 250million (800yrs to double)

1500ad - 500million (1200yrs)

1800ad - 1 billion (300yrs)

1930 - 2 billion (130yrs)

1975 - 4 bilion (45yrs)

2030 - 8 billion (55yrs???)

If we had maintained a similiar pattern in doubling time of the population, it should have taken 1/3 the length of time than the previous doubling...or 15 to 20 years to double from 1975 to 1990 or 1995?  Infinite growth in finite world is difficult...but it's even harder to break the paradigms built upon these fallacious beliefs.

Wed, 10/03/2012 - 17:55 | Link to Comment sherryw
sherryw's picture

The pill?

Wed, 10/03/2012 - 18:50 | Link to Comment MeBizarro
MeBizarro's picture

Interesting post. 

Wed, 10/03/2012 - 13:13 | Link to Comment LongSoupLine
LongSoupLine's picture

Bass is so matter of fact.  This is what I like about him.

Wed, 10/03/2012 - 13:22 | Link to Comment Sandmann
Sandmann's picture

Simple fact is that Detroit is still a Symbol of the USA.......not quite what is used to be ....but still a symbol

Wed, 10/03/2012 - 13:29 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Kyle Bass has it pretty worked out, but I don't know why he is investing in sub-prime.  That market will crash sooner than later.

Wed, 10/03/2012 - 16:37 | Link to Comment ATM
ATM's picture

Later. Subprime historically performs very well in conditions like we are seeing right now with very low rates. In fact it has outperformed other asset classes until rates hit about 6.5% then look out. We're a long way from 6.5% so I think Bass is entirely right and hove bought quite a bit of Alt-A, MBS and Alt-A myself int he past year. Love the yield and been getting some nice appreciation on top of it.

When rates start closing in on 6% I'll start getting out but that might be 5 years of collecting 10% yield.

Wed, 10/03/2012 - 13:32 | Link to Comment 4Y_LURKER
4Y_LURKER's picture

I'm nobody, but I think housing still could bottom out as opposed to flatlining.  If the FED is inflating the worth of MBS with QE(N!), and everyone's still arguing about title and "real" estate... That leads me to believe, maybe erroniously, that the banks still don't hold the actual titles/deeds.  They have just rehypothecated morgatages and are acting like  that is proper consideration for someone's home!  If only more people knew about RESPA. Illegitimate debts are contractually null-and-void from a conflict of interest and consideration.  I guess I live in a dreamworld... I just want to see housing at 1970's prices.   What would a fourty-year-correction look like?  Do you hear the tide going out?

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 15:17 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

Tidefighter...  agreed, think Detroit, think empty houses waiting to be foreclosed on that don't get maintained.  More plunge to come.  Spot areas may yet appreciate but the macro trend is down...

Wed, 10/03/2012 - 18:49 | Link to Comment backhandtopspin...
backhandtopspinslicer's picture

dejavu all over again

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:31 | Link to Comment TideFighter
TideFighter's picture

Yes, yes I do. The majority of 2009 and later foreclosures are on stall. The mortgage banksters, primarily BoA, Chase, Citi must believe that monetizing the sack of shit MBS will ramp house values, and it ain't happening. Houses will go lower, all who could qualify have purchased/refinanced, and we are left with a lower wage earner pool with unstable future. My paralegal is renting a 3,000 sq. ft. house, one block of the ocean for $1,600. The house was listed in 2009 at 1.1 million with a current mortgage of $540,000 with Mellon. The owner, who was flipping RE at that time, has 20 pages of foreclosure records (read jusdgments) and can't refi out of his 6.2% rate. I heard her say that she was not going to renew lease because she can get a bigger house for less rent.  This shitbird housing market ain't going anywhere but down for a long, long time.

Wed, 10/03/2012 - 14:36 | Link to Comment akak
akak's picture

Say it again, Sam.

Wed, 10/03/2012 - 15:16 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Press save once, not 14 times.

Wed, 10/03/2012 - 16:14 | Link to Comment Miss Expectations
Miss Expectations's picture

Fattest finger on ZH.

Wed, 10/03/2012 - 16:41 | Link to Comment ATM
ATM's picture

I think he works for Waddell and Reed.

Wed, 10/03/2012 - 21:17 | Link to Comment GoldenTool
GoldenTool's picture

Glich in the algo?

 

 

Wed, 10/03/2012 - 16:13 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Newbee to Zerohedge?

Wed, 10/03/2012 - 16:17 | Link to Comment new game
new game's picture

the bernank is buying mbs left and right - when this fucking mess collapses and peoples don't have a job to pay da mortgage, who is going to forclose and take that house? da fed, and soon to be banksters dolling out rent servatude to a neighborhood near you... complete fucking control of everything, no less unless peoples wake the fuck up SOOOOOOOOOOOON...

Wed, 10/03/2012 - 13:32 | Link to Comment ebworthen
ebworthen's picture

"If an accountant can't fix it, how will politicians?"

Classic.

Wed, 10/03/2012 - 17:04 | Link to Comment delivered
delivered's picture

Remember what makes a good accountant when asked this all important question. What does 2 plus 2 equal? Correct accountant response. What ever you need it to be! That's how it will get fixed.

Wed, 10/03/2012 - 13:32 | Link to Comment blunderdog
blunderdog's picture

Kyle Bass rocks.  I wanna get a singing bass for my wall that plays "Perhaps, perhaps, perhaps."

Wed, 10/03/2012 - 13:33 | Link to Comment TideFighter
TideFighter's picture

Sigma population equals Sandra Fluke's picture on a pack of Trojans.

Wed, 10/03/2012 - 13:39 | Link to Comment Tombstone
Tombstone's picture

Have we forgot that Benny is the Fixer?

Wed, 10/03/2012 - 13:45 | Link to Comment Pretorian
Pretorian's picture

He is not as loud as he use to be.

Wed, 10/03/2012 - 17:18 | Link to Comment sherryw
sherryw's picture

He's realised it's not just a matter of waking the complacent PTB so that things can be fixed. Ha! It's more serious than that; the PTB won't act no matter what, so he's just saving his own skin and those for whom he's a fiducuary. He already has his positions and he loses nothing by sharing them with us. Just as he is sliding out the exit door, so should we, in a way suited to our means.

Wed, 10/03/2012 - 13:58 | Link to Comment TrustbutVerify
TrustbutVerify's picture

I'm familiar with Kyle Bass's views on Japan but what should the position be to play it?  Short the Japamese stock market?  Or could we assume when the financial earthquake begins to occur Japan will print money like no tomorrow?  Or short Japan bonds - with similar questions if the government starts buying their own bonds and/or printing money.  

I would assume international market ripples would be serious, too.  ...multiples of Greece and the present European situation.  

Wed, 10/03/2012 - 16:42 | Link to Comment ATM
ATM's picture

I think Bass is short Japanese bonds

Wed, 10/03/2012 - 14:03 | Link to Comment Dealer
Dealer's picture

When Kyle Bass speaks, we need to listen.

Wed, 10/03/2012 - 14:18 | Link to Comment Inthemix96
Inthemix96's picture

Dealer.

This may sound harsh, but no.  When kyle bass speaks, think for yourself.

He is worth a fucking mint and cares not for you, your family and your friends.  Look after the aformentioned and give this fucker a wide berth.

I mean this in the best possible way.  Does he help you in your day to day life?  Pop round and sit with the kids while you and the wife pop out for a meal?  Hmm... 

Fuck him, fuck them all, all they want is another angle to screw me and you over mate

Wed, 10/03/2012 - 16:25 | Link to Comment new game
new game's picture

right on - these fuckers are playing the game; until they send all their clients money back and shut the door, they are part of the problem, NOT THE SOLUTION.  that goes for all the smart money managers, pimpco, ect.

reason he seems a little on edge is quite simple, the rigged game isn't giving him inside angle to play and he is not one of the 19 primary wash rinse players with the fed.

kyle, hang it up and retire to your ranch and tune the fuck out and enjoy the grandkids./..

Wed, 10/03/2012 - 14:08 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

In 2008 the Banks thought they could blow up the Market.  Grab all of their Competitors for pennies on the Dollar.  Beg Congress to Give them Billions to fix it and all would be well.

It did not work that way.  The downturn was too severe.  People are still afraid to touch the Market no matter how high it goes.  They became collateral damage themselves by losing their Jobs and Homes.

The Banks underestimated the damage they would do in their smugness and now after 4 years still do not know how to fix it.  Printing Money is only making it worse.  Although, that will keep them in the Green for a little longer, it will soon come home to roost.

Problem is there are some things you cannot get back after you ruin them.  Like Trust and Confidence.

Yep, they shot themselves in their own foot this time.

Wed, 10/03/2012 - 16:36 | Link to Comment marathonman
marathonman's picture

Baby boomers got old and now need all their assets to live on in retirement and old age.  No more buying McMansions and new Mercedes.  No need to produce stuff when you already got everything you could possibly want.  Maybe those abortion programs weren't such a good idea.  Now the Baby Boomers got no one to support them in old age.  Bummer.

Wed, 10/03/2012 - 14:13 | Link to Comment larz
larz's picture

i think the convexity in congress is astounding and there should be outrage call the cops!

Wed, 10/03/2012 - 14:19 | Link to Comment Tsunami Wave
Tsunami Wave's picture

Do you think Kyle collected the 200$US payment for coming on the show?

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