150 Seconds Of "You Can't Handle The European Truth" From Kyle Bass

Tyler Durden's picture


"A popular revolt will happen" is how Kyle Bass sums up the endgame from kicking the can in Europe. Dismissing the headline-making 'But, Blackrock is buying European bonds', Bass reminds Bloomberg's Stephanie Ruhle that very few ever get the crises correct and that the herd will keep buying things until it blows apart. With massively over-leveraged banks and a Greek dependency, Bass notes that investing in Europe now is like picking up a dime in front of a bulldozer and expects Germany will eventually leave the Euro (within 3-4 years) as the 'joint-and-several' liabilities will never happen. 150 well-spent seconds to summarize just what is going in Europe, as he concludes with Milton Friedman's quote on Europe: "when they hit a bump in the road, it will tear them apart at the core."


Stay tuned to the end for his clear reasoning for why this will not end well...

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Fri, 11/16/2012 - 12:51 | 2988289 fonzannoon
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Does anyone know if Pelosi, Reid and Boner got their buy orders executed before they spoke?

Fri, 11/16/2012 - 12:55 | 2988307 camaro68ss
camaro68ss's picture

WTF just happend in the market. DOW turns positive in .5 secs


Fri, 11/16/2012 - 12:57 | 2988317 fonzannoon
fonzannoon's picture

look at my comment above you.

Fri, 11/16/2012 - 13:02 | 2988346 camaro68ss
camaro68ss's picture

The bernake must have flipped the Overdrive switch on the printers

Fri, 11/16/2012 - 16:00 | 2989254 lemonobrien
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hey dude, it's all propaganda, and it's all lies. mixed with some truth like the devil do.

Sat, 11/17/2012 - 07:51 | 2991279 Lord Koos
Lord Koos's picture

Wow, Karl sure has a lot of fans on this site.  

He's probably buying up all the twinkies he can find right now.

Fri, 11/16/2012 - 13:13 | 2988412 Fredo Corleone
Fredo Corleone's picture

Kyle Bass -- the guy always rang a bell...Got it: Bass looks a little like my brother Santino.

"We don't discuss business at the table."


Fri, 11/16/2012 - 14:01 | 2988671 Midas
Midas's picture

You could watch CNBC all morning and not hear that much worthwhile information.

Fri, 11/16/2012 - 13:13 | 2988415 CoolBeans
CoolBeans's picture

Reply:  A déjà vu is usually a glitch in the Matrix. It happens when they change something.  

(From "The Matrix")

Fri, 11/16/2012 - 12:55 | 2988308 CClarity
CClarity's picture

Never mind that Virgin America just canceled 20 Airbus orders or that WalMart employees plan to strike on Black Friday - - - stocks will be saved by Congress, just not the minions that they represent.

Fri, 11/16/2012 - 13:21 | 2988458 fockewulf190
fockewulf190's picture

And lets not forget that 18,500 my way or the highway union workers get to go home permanently, each of them with a twinkie rammed up their ass on the way out.

Fri, 11/16/2012 - 13:46 | 2988591 XitSam
XitSam's picture

Why do union names always sound like communist organizations?  "United Food & Commercial Workers International Union", "Department Store #1", "Bakery, Confectionery, Tobacco Workers and Grain Millers International Union", "Grocery Store",  "International Brotherhood of Electrical Workers Local 25".

So droll. Why not the "Fun and Tasty Baker's Union" or the "We Light Up Your House Local 15"?

Fri, 11/16/2012 - 14:00 | 2988664 Boba Fiat
Boba Fiat's picture

Why do union names always sound like communist organizations?

Because they are?

Sat, 11/17/2012 - 07:52 | 2991280 Lord Koos
Lord Koos's picture

Right... labor organizations have no place in a free society.  You guys are unbelievable.

Sat, 11/17/2012 - 13:38 | 2991834 prains
prains's picture

Boba Fat

2000 years of history shows that if workers don't organize they are exploited to death, the issue is not about organizing but exploiting

Fri, 11/16/2012 - 14:58 | 2988978 Matt
Matt's picture

"Making Change at Wal-Mart" seems to show a sense of humour.

Fri, 11/16/2012 - 12:57 | 2988319 scatterbrains
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Did you mean their sell orders ?  Unless gold leads the way this pop is designed to be sold into hard..  or so I'm thinking

Fri, 11/16/2012 - 13:02 | 2988344 fonzannoon
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scatterbrains gold has moved 2 bucks all morning. Somneone has it firmly in a headlock right now. I would not draw any conclusions from gold right now.

Fri, 11/16/2012 - 13:26 | 2988486 Al Huxley
Al Huxley's picture

Look at the open interest and trading volume on GLD options and you can make a pretty good guess about where gold will be moving over the next 3 hours.

Fri, 11/16/2012 - 13:35 | 2988535 fonzannoon
fonzannoon's picture

thanks for the tip. i'm so confused i just keep driving to the coin store and turning around halfway there lol.

Fri, 11/16/2012 - 13:25 | 2988476 Al Huxley
Al Huxley's picture

I'm sure they waited for confirmation before speaking.

Fri, 11/16/2012 - 13:26 | 2988487 slaughterer
slaughterer's picture

I started feeling better about the place I work when the women started admitting stronger crushes on Kyle Bass than Jamie Dimon.  

Fri, 11/16/2012 - 12:53 | 2988296 A Lunatic
A Lunatic's picture

From can kicking to Ass kicking, bitchez...............

Fri, 11/16/2012 - 12:55 | 2988299 Cognitive Dissonance
Cognitive Dissonance's picture

"....very few ever get the crises correct and that the herd will keep buying things until it blows apart."

The herd is always right..........right up until it is spectacularly wrong.

Fri, 11/16/2012 - 13:01 | 2988328 hedgeless_horseman
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Don't forget the injuns are helping to injuneer it.  The tribe must eat.


Fri, 11/16/2012 - 13:32 | 2988519 Harbanger
Harbanger's picture

In the painting the injuns already had European horses.  It's a terrible waste to chase the entire herd over cliffs on horseback when you can easily chase and hunt only what you need.

Fri, 11/16/2012 - 13:46 | 2988568 hedgeless_horseman
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...easily chase and hunt only what you need.

Yes, the injuns are much smarter these days...

Germany, like Japan, are post-war pawns. Their currencies are DESIGNED to be debased, as and when needed, to achieve synchronized diving with the pound and dollar. If Germany wasn't in the Euro, its prior experience with hyper-inflation would prevent it from debasing when instructed to do so (obviously not a problem with the Nips). Both countries go along as willing pawns simply because they have been re-created post-war as export nations totally reliant on weak currencies.


The PIIGS profligate spending has ALWAYS been there, like a fat store, and can be used by the brain when needed to feed the body.



Fri, 11/16/2012 - 13:56 | 2988634 Harbanger
Harbanger's picture

Good point, I keep forgetting they were re-created post-war as export nations reliant on weak currencies.  I don't think exporting to the PIIGS was in the equation though, maybe it was the plan with the Euro.  China was the wildcard no one anticipate at the time.

Fri, 11/16/2012 - 14:28 | 2988815 AnAnonymous
AnAnonymous's picture

It's a terrible waste to chase the entire herd over cliffs on horseback when you can easily chase and hunt only what you need.

Painter was an 'american'. The scene had to be spectacular. 'Americans' love their propaganda and fantasy.

Fri, 11/16/2012 - 15:38 | 2989137 Harbanger
Harbanger's picture

I like you hun, that's why I'm telling you that as sure as water will wet you and fire will burn it's going to be Hell.

Fri, 11/16/2012 - 16:13 | 2989337 ImnotPOTUS
ImnotPOTUS's picture

Canvas is not big enough. Off to the right is a passle of white men. They "gave" the horses to them in exchange for keeping all of the hides to take back east. The Chief protested that he needed the skins for clothing, white man countered with clothes and blankets and threw in the small pocks for free. Why piss away money on expensive bullets when you can get the locals to run around and do the hard work for you.

Fri, 11/16/2012 - 12:54 | 2988303 RSloane
RSloane's picture

investment in Europe = picking up a dime in front of a bulldozer

Fri, 11/16/2012 - 13:25 | 2988478 Cognitive Dissonance
Cognitive Dissonance's picture

Eventually to be.......investment in USA = picking up a dime in front of a bulldozer.

Just because Europe is leveraged 3 times more than USA doesn't mean the USA is in the clear.

Fri, 11/16/2012 - 15:01 | 2988987 catacl1sm
catacl1sm's picture

Is it a silver dime?

Fri, 11/16/2012 - 12:54 | 2988305 Neethgie
Neethgie's picture

Do we delude ourselves that its 17 nations under god?

YES YOU FUCKING MORONS, Forever US analysts have been talking of Europe as if its a mirror USA, we hate each other, we are our own people in the eu we fight to get the best for ourselves with someone elses money...

The whole thing was built on nothing, now its going to collapse..

Fri, 11/16/2012 - 13:08 | 2988376 GeezerGeek
GeezerGeek's picture

Brussels should set up a web site allowing Europeans to submit and subscrige to petitions. I wonder how many people would sign up to secede from the EU.

Fri, 11/16/2012 - 13:14 | 2988423 Neethgie
Neethgie's picture

We have a govt site in the uk called epetitions...

to be read out, they need 100,000 votes.. the one demanding a vote to leave the eu is one of the few that have made this milestone.. another Petition is getting close to that..

Fri, 11/16/2012 - 16:58 | 2989582 Shigure
Shigure's picture

Stop the beer duty escalator?


Fri, 11/16/2012 - 14:42 | 2988901 Lednbrass
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We also hate each other in the US and fight to get the best for ourselves with borrowed money from advance paycheck loans based on the future earnings of elementary school kids.

Seems pretty similar to me, I dont think Europeans understand how far from united the US is and just how deeply its regions despise each other.

Sat, 11/17/2012 - 07:55 | 2991281 Lord Koos
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I think you're exagerrating.  Do you get out of your "region" much?

Fri, 11/16/2012 - 12:56 | 2988314 mjorden
mjorden's picture

"how many of your relatives" .... stop right there Mr.Bass

Fri, 11/16/2012 - 14:57 | 2988971 gmrpeabody
gmrpeabody's picture


Actually, my parents would have been fine..., it's the sisters, aunts and uncles, cousins, and in-laws that can kill.

Fri, 11/16/2012 - 12:56 | 2988318 IridiumRebel
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Fri, 11/16/2012 - 12:57 | 2988320 Shizzmoney
Shizzmoney's picture

Who the fuck would think buying ANY Euro debt is a good idea?

Fri, 11/16/2012 - 12:59 | 2988329 Temporalist
Temporalist's picture

The people that want to dump it on you after they convince you that it's a great deal because, well, they bought it and they are the "smartest people in the room".

Fri, 11/16/2012 - 13:24 | 2988473 resurger
resurger's picture

Corzine did! That didnt end well too.

Fri, 11/16/2012 - 14:52 | 2988952 youngman
youngman's picture

Yes watch out..they will "package it"...get it rated AAAA....and sell it to some dumb Pension fund for the return that THEY have to get to keep their job...

Fri, 11/16/2012 - 15:20 | 2989051 dbTX
dbTX's picture

It ended pretty well for John, he's 1.6 B ahead

Fri, 11/16/2012 - 12:57 | 2988322 Segestan
Segestan's picture

He's good.Smart man that is part of the 5%.

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