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Kyle Bass Tells 'Nominal' Stock Market Cheerleaders: Remember Zimbabwe

Tyler Durden's picture


Amid the euphoria of today's crossing of the Dow's Maginot Line at 14,000, Kyle Bass provided a few minutes of sanity this morning in an interview with CNBC's Gary Kaminsky. Bass starts by reflecting on the ongoing (and escalating) money-printing (or balance sheet expansion as we noted here) as the driver of stock movements currently and would not be surprised to see them move higher still (given the ongoing printing expected). However, he caveats that nominally bullish statement with a critical point, "Zimbabwe's stock market was the best performer this decade - but your entire portfolio now buys you 3 eggs" as purchasing power is crushed. Investors, he says, are "too focused on nominal prices" as the rate of growth of the monetary base is destroying true wealth. Bass is convinced that cost-push inflation is coming (as the velocity of money will move once psychology shifts) and investors must not take their eye off the insidious nature of underlying inflation - no matter what we are told by the government (as they will always lie when its critical). Own 'productive assets', finance them at low fixed rates (thank you Ben), and finally, on HLF, don't bet against Dan Loeb.


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Fri, 02/01/2013 - 14:48 | 3206882 Say What Again
Say What Again's picture

I watched this piece.  The ZIMM reference was priceless!


Fri, 02/01/2013 - 14:57 | 3206913 hedgeless_horseman
hedgeless_horseman's picture



So what would the chart for a bottle of HerbaLife Cell Activator* priced in gold look like?

*Supports the body’s absorption of micronutrients and promotes cellular energy production.

WTF is a micronutrient?

Fri, 02/01/2013 - 14:59 | 3206933 CheapBastard
CheapBastard's picture

It's "The Sandwich Generation:"


According to a new Pew Research study that was just released,one out of every seven adults in the United States is financially supporting their kids and their parents at the same time.  Pew Research is calling it “the Sandwich Generation”.

Fri, 02/01/2013 - 15:01 | 3206941 The Juggernaut
The Juggernaut's picture

When it becomes serious you have to lie.

Fri, 02/01/2013 - 15:03 | 3206949 MillionDollarBonus_
MillionDollarBonus_'s picture


What a day! Not only did the S&P sustain a spectacular rally above 1500, but the VIX plunged into the 12s in an epic collapse, sending shockwaves of shame and embarrassment throughout the doomer libertarian community. Let's review the facts:

  1. Interest rates are at all time lows 
  2. The stock market is soaring despite a set back in the GDP
  3. The housing market is now undeniably in a recovery
  4. Employment is picking up, in line with our Federal Reserve's dual mandate

Listen folks: this is a recovery - there's no denying it anymore. Doomer ZHers need to admit that they were wrong. ZHers may have lost most of their pride and dignity, but they still have an opportunity to retain a semblance of credibility if they admit that they were wrong


Fri, 02/01/2013 - 15:07 | 3206957 Meat Hammer
Meat Hammer's picture

Who's paying you?

Fri, 02/01/2013 - 15:10 | 3206971 Say What Again
Say What Again's picture

Hey MDB,

Can I buy some puts on the SPY from you?

Fri, 02/01/2013 - 15:12 | 3206977 The Juggernaut
The Juggernaut's picture

MillionDollarBonus: can't you see its all a manufactured lie?

Fri, 02/01/2013 - 15:14 | 3206996 Say What Again
Say What Again's picture

Are you related to L. Ron Hubbard?

Fri, 02/01/2013 - 15:40 | 3207106 economics9698
economics9698's picture

"Zimbabwe's stock market was the best performer this decade - but your entire portfolio now buys you 3 eggs"

In Germany 1923-25 the stock market did flips but after inflation investors lost 33%. 

Fri, 02/01/2013 - 15:47 | 3207159 SafelyGraze
SafelyGraze's picture

take-home headline:

Bass recommends southern African stock, calls it "best performer", advises timely out-rotation   

Fri, 02/01/2013 - 15:57 | 3207198 Say What Again
Say What Again's picture


I see you've spent some time at the Daily Gazette!

Say hello to Louis for me.

Fri, 02/01/2013 - 16:03 | 3207235 economics9698
economics9698's picture

If you adjust 14,000 today to 14,000 2007 you get 12,681 using official numbers.  Careful with that inflation, it will kill you.

Fri, 02/01/2013 - 16:36 | 3207367 FEDbuster
FEDbuster's picture

I am still a Zimbabwe multi-trillionaire, so listen up (how's that for an opening).  In it's heyday, the Zimbabwe stock market rose 200+% daily.  Will the S&P have a 200% up day?  Maybe MDB is right when the S&P hits 100K, 200K, etc.,,, and a gallon of gas or milk is 1,000 FRNs.  You might need a trillion dollar platinum coin to buy a house.  As we continue heading into the shit abyss, all things are possible.  

Fri, 02/01/2013 - 17:21 | 3207525 A L I E N
A L I E N's picture

Thats right, you better take notes boy!

Fri, 02/01/2013 - 21:58 | 3208195 trav777
trav777's picture

so if we're goin ZIM, you should be levered long to the hilt, right?

Oh and you better be armed if you're white.

Sat, 02/02/2013 - 18:44 | 3209710 Rogue Trooper
Rogue Trooper's picture


These 'Whities' demonstrate the gangsta technique LOL

I, for one, if faced with a similar situation would still prefer to utilise the capabilities of my M1A.  Sure they could get 'lucky' as the morons spary rounds in a random manner.

Final shootout from Unforgiven... Classic Clint and worth reflecting upon in these dark times.

Whities Weapon of Choice.... The M1A!

Fri, 02/01/2013 - 18:10 | 3207671 Tango in the Blight
Tango in the Blight's picture

I'm a Zimbabwe quadrillionaire. I have 10 of those 100 trillion dollar notes.

If I could somehow change Zimbabwe Reserve Bank to Federal Reserve Bank on the notes could I then pay off all the world's national debts?

Fri, 02/01/2013 - 18:19 | 3207684 FEDbuster
FEDbuster's picture

I'll trade all my Zimbabwe trillions for one of Obama's trillion dollar platinum coins.

Fri, 02/01/2013 - 22:18 | 3208262 MajorWoody
MajorWoody's picture

Even if you don't agree with MDB you have to listen to his reasoning.

If you don't your setting yourself up for a sh!tsandwich tasting.

Keep repeating your own mantra over and over you brainwash yourself.

Keep an ear on MDB.

Fri, 02/01/2013 - 22:57 | 3208378 fourchan
fourchan's picture

hes going to be right, again, one day. real right.

Sat, 02/02/2013 - 18:14 | 3209660 saveandsound
saveandsound's picture

Hi MajorWoody,

I agree - when you like to stay in touch with reality you need to re-check your worldview every once in a while. However, what do you think the upcoming currency wars are going to bring?

I believe - I do not know - that asset prices and the CPI will go up. And wages stay where they are. Countries which want to contain inflation will need to establish capital controls or see their exports diminish.

*narf* I'm brainwashing myself again. ;-)

Sat, 02/02/2013 - 15:54 | 3209422 SAT 800
SAT 800's picture

I tried over and over again to explain to American Citizens that were happy with their 401K portfolios that they had "made" nothing; because of inflation. The result is they don't want to talk to you anymore. Inflation works because it goes by slowly and people really don't think very carefully. A bigger number must be better.

Sat, 02/02/2013 - 16:45 | 3209506 HyperinflatmyNutts
HyperinflatmyNutts's picture

 The last time the Dow was 14000 in 2007 GOLD was $700 now in 2013 once again the Dow is 14000 but this time GOLD it pushing $1700.  Gold and Silver Bitchez.....  The Dow can go to 20000 who cares?  The Dow to GOLD will be 1 to 1.  up up and away..  

Fri, 02/01/2013 - 16:05 | 3207239 brockhardman
brockhardman's picture

Kyle Bass speaks -> I listen

Fri, 02/01/2013 - 16:38 | 3207375 Karlus
Karlus's picture

"Bass recommends southern African stock, calls it "best performer", advises timely out-rotation"


Tonight on MS-NBC:

Kyle Bass, famed shortseller from Texas is now recommending trading your portfolio for eggs. Panel, what do we think of this new recommendation and what does this do for Bass' reputation in the market?

Fri, 02/01/2013 - 18:17 | 3207685 FEDbuster
FEDbuster's picture

Buy a chicken instead, then you will have an egg a day.

Sat, 02/02/2013 - 15:59 | 3209430 SAT 800
SAT 800's picture

Unless you make the acquaintance of an economics Phd. who explains to you that the Chicken is an example of an investment with declining future value; so you should slaughter it and eat today in order to take advantage of the "wealth effect"; then you will wake up tomorrow with no chicken and no egg.

Fri, 02/01/2013 - 15:17 | 3207016 in-Credible Banker
in-Credible Banker's picture

"Say What Again"  - now THAT's a handle!!!!  Well done man!!!



Fri, 02/01/2013 - 15:22 | 3207028 Say What Again
Say What Again's picture

Thank you.

Come on over to my house after the close, and I'll buy you a Kahuna Burger.  Mia will be there too.

Fri, 02/01/2013 - 22:35 | 3208327 stuman
stuman's picture

Hey, is that the Big Kahuna Burger on the corner?


My...those are tasty burgers ;)

Fri, 02/01/2013 - 15:08 | 3206962 Randall Cabot
Randall Cabot's picture

But Tom DeMark's sell signal is up to 23, surely the market is exhausted by now:


Fri, 02/01/2013 - 15:08 | 3206965 ParkAveFlasher
ParkAveFlasher's picture

If this economy keeps recovering, we're gonna need more guns.

Fri, 02/01/2013 - 15:17 | 3206973 Banksters
Banksters's picture

Milliondollarbonus, I usually don't pick on retards, but today I'm feeling somewhat sadistic.


1. Money is debt.   

2.  Banks are raping savers, by my estimates 3-4 trillion dollars, through zirp.   That is a whole lotta STIMULUS.

3.  Banks aren't loaning because they are ZOMBIES.

4.  Wages are flat, which means falling, due to inflation

5.  Employment is nothing more than a statistical mirage.   You can't have millions of people disappear and not have it affect the overall unemployment rate


Sell stupid somewhere else.   

Fri, 02/01/2013 - 15:40 | 3207110 Say What Again
Say What Again's picture

Rumor has it that MDB suffered a serious head injury.

Therefore, he's not a retard -- he's a "victummmm"

Fri, 02/01/2013 - 16:18 | 3207291 chunga
chunga's picture

You guys forgot the disclaimer.

No offense intended for regular, normal retards and victims.

Fri, 02/01/2013 - 15:21 | 3207026 Apostate2
Apostate2's picture

You nailed it. I am an Apostate thus always wrong. 

All those salubrious taxes cometh.


Fri, 02/01/2013 - 15:24 | 3207040 Gimp
Gimp's picture

Is that you Steve?

Fri, 02/01/2013 - 15:30 | 3207059 q99x2
q99x2's picture

Go long MDB and get those 3 eggs.

Fri, 02/01/2013 - 15:37 | 3207084 Jake88
Jake88's picture

Interest rates at all time low. True. Too bad nobody wants a loan

Stock market soaring. True. Remember Zimbabwe. Set back in GDP. - Two "set backs" in a row equal recession.

Housing market in undeniable recovery. - FALSE

Employment picking up. - A smidge maybe but real unemployment is still very high.

Fri, 02/01/2013 - 16:35 | 3207365 Mr. Magoo
Mr. Magoo's picture
Zimbabwe: Best Performing Stock Market in 2007?

April 10, 2007 by

What happens next?????????

Fri, 02/01/2013 - 15:54 | 3207193 steelhead23
steelhead23's picture

You know, when an alcoholic is suffering delerium tremens, a good stiff drink would alleviate the symptoms - but the alcoholic is still addicted and will eventually die.  Party on.

Fri, 02/01/2013 - 23:50 | 3208493 FEDbuster
FEDbuster's picture

Barkeep Ben keep the shots of QE coming, let's party like it's 1999!

Fri, 02/01/2013 - 15:57 | 3207204 WhiteNight123129
WhiteNight123129's picture

You can not be short when you have currencies being gutted.

I mean look at the Merval from Argentina, went up 750% since 2002.
If you are on a 2 + 20% you have to love it.

Of course it is a recovery, a nominal recovery. A large nominal recovery, soon to become a hugely large nominal recovery.


Fri, 02/01/2013 - 17:25 | 3207532 Panafrican Funk...
Panafrican Funktron Robot's picture

"If you are on a 2 + 20% you have to love it."

Definitely an argument in favor (for those in power) of continued, rapid devaluation.  The other fun part is that, once you're done paying he 2 'n 20, you then get to pay cap gains tax on those nominal gains.  Hello, tax revenues!  Which of course get recycled right back to the cronies.  

Fri, 02/01/2013 - 15:58 | 3207213 WarHorse
WarHorse's picture

Can you still remember what the shooter on the grassy knoll looked like?

Fri, 02/01/2013 - 16:41 | 3207390 Karlus
Karlus's picture

Was it G Gordan Liddy, or some Texas rangers wearing hats?

The conspiracy nut in me said its the two Secret Service guys wearing Johnson masks....

Fri, 02/01/2013 - 16:57 | 3207452 Fish Gone Bad
Fish Gone Bad's picture

JFK was shot from a storm drain.

Fri, 02/01/2013 - 21:12 | 3208012 MisterMousePotato
MisterMousePotato's picture

Actually, weird as it may sound, Woody Harrelson's father was probably one of the team. Else a remarkable coincidence. (Ditto GWB, Sr.)

Fri, 02/01/2013 - 16:10 | 3207263 Rick Blaine
Rick Blaine's picture

1.  Yeah, and I'm not sure why you think that's a good thing.

2.  And who exactly is buying stock?

3.  What???

4.  Are you on crack?  The participation rate is where it was like 30 years ago.

Fri, 02/01/2013 - 16:35 | 3207351 ebworthen
ebworthen's picture

"...they still have an opportunity to retain a semblance of credibility if they admit that they were wrong."

Wrong about what MDB?

$16 Trillion in debt?

$65+ Trillion in unfunded liabilities?

Rigged markets?

Death of the rule of law?

It's like celebrating and saying you are "in recovery" because you have a full head of lush radiant hair even though your body is riddled with growing tumors.

Fri, 02/01/2013 - 16:34 | 3207353 Mr. Magoo
Mr. Magoo's picture

n the old days people bought stocks in companies that produced a good product and turned a profit. These days the markets are controlled by the big funds. May the best computer program win.


Fri, 02/01/2013 - 16:43 | 3207403 Rip van Wrinkle
Rip van Wrinkle's picture

Didn't you listen, MDB??


"When things get serious, you have to lie"



Fri, 02/01/2013 - 16:51 | 3207433 EscapingProgress
EscapingProgress's picture

Great comment MDB. Just wait until NGDP targeting is implemented - S&P bull to 3000 bitchez! I look forward to your future commentary regarding the effects of currency debasement gimmics with fancy names.

Fri, 02/01/2013 - 17:21 | 3207524 resurger
resurger's picture


Fri, 02/01/2013 - 17:27 | 3207534 de3de8
de3de8's picture

Hey MDBogus,
When the SHTF, I hope you come to me for help! Oh how sweet it will be!

Fri, 02/01/2013 - 17:26 | 3207540 goldfish1
goldfish1's picture

"this is a recovery - there's no denying it anymore."

Hahahahahah really good material. The encapsulated mantra of the talking heads. hee hee.

Fri, 02/01/2013 - 17:36 | 3207570 Dre4dwolf
Dre4dwolf's picture

50% of the working age population is unemployed

49% of the working age population is on government handouts

and wages have dropped accross the board.


Sure you can hire 20 people for the price of 10 now.

Housing still has a shit-ton of shaddow inventory, the banks are hiding the flood of foreclosures and fraudulant loans.



They are just papering over everything with inflation and praying it will all go away.


But in the end, when the sugar high is over and done with and the celebrations are over, we will be in it worst than we started, and this time we will be all out of toilet paper.

Fri, 02/01/2013 - 18:15 | 3207681 eatthebanksters
eatthebanksters's picture

I lost my house and everything with it in the meltdown in 08'....yesterday I went out and bought a Land Rover and Porsche on 100% credit; I'm buying a new house with a no money down loan, I am maxed out on my credit cards and make enough money to sustain 1/2 of my debt.  I'm solvent and there is a recovery....right!  How fucking stupid are you MDB?  Looking at half the picture and lying about the other half is what got us to where we are.  Guys like you ought to be taken out back and taught a lesson that only bad things come from lying. When the bad things happen, then guys like you are going to pay a very big price for lying to the world and the main stret sheeple.

Fri, 02/01/2013 - 19:43 | 3207832 pacu44
pacu44's picture

ok, since 2001 your precious stock market has been crushed when priced in gold and silver

Fri, 02/01/2013 - 19:50 | 3207841 Room 101
Room 101's picture

I want credibility! 

I admit it, I was WRONG!

(Thanks economics trollery EVAH!)

Sat, 02/02/2013 - 16:05 | 3209444 lasvegaspersona
lasvegaspersona's picture


You are reading the headlines and skipping the content. We have the first quarter of negative GDP....that means we are 3 months away from having an official RECESSION. FYI...that is not a good thing and kinda goes against the idea of RECOVERY.

Bass may not bet against Loeb, I would never bet against Bass. If you listen carefully with adult ears you will hear Bass saying, 'hold on to your ass we have severe inflation coming, hold only hard(er) assets and borrow at fixed rates to own them.' FYI ...again...this is a strategy for hyperinflation.

It is nice to be optimistic but this is not the time. This is the time you should be the most guarded you have ever been in your life. When paper is all you've got you should prepare to loose everything. Doomers are a pain in the butt (I know...I am one ...and no one likes me) but our moment is coming soon. We will have assets and everyone else will hold the ashes of paper 'wealth' as it blows, still burning, from their clutching hands.


drama off...

Sat, 02/02/2013 - 16:26 | 3209477 DosZap
DosZap's picture

Listen folks: this is a recovery - there's no denying it anymore. Doomer ZHers need to admit that they were wrong. ZHers may have lost most of their pride and dignity, but they still have an opportunity to retain a semblance of credibility if they admit that they were wrong.

MDB, you need to see what's on both sides of tnhe fence before making these outlandish claims/sarc


Sat, 02/02/2013 - 16:37 | 3209494 HyperinflatmyNutts
HyperinflatmyNutts's picture

MDB..  maybe one day they will get it, but untill then keep it coming lol

Sat, 02/02/2013 - 18:54 | 3209729 rodocostarica
rodocostarica's picture

Can I retain a semblance of credibilty if I admit that MDB is wrong?

Fri, 02/01/2013 - 15:14 | 3206953 hedgeless_horseman
hedgeless_horseman's picture



Own 'productive assets', finance them at low fixed rates (thank you Ben), and finally, on HLF, don't bet against Dan Loeb.

He is right, except for the part about Dan.

Short pills that, "supports the body's absorption of micronutrients."

Go long land and cattle that produce actual nutrients...

Mid-stream beef stroganoff production.




Fri, 02/01/2013 - 15:15 | 3206995 Temporalist
Temporalist's picture

I was just about to ask what that was...drooling...

Fri, 02/01/2013 - 17:36 | 3207566 Say What Again
Say What Again's picture

Is that a picture of the Bernak's brain on drugs QE?

Fri, 02/01/2013 - 18:09 | 3207670 Cast Iron Skillet
Cast Iron Skillet's picture

Brain on schrooms, looks like.

Sat, 02/02/2013 - 15:35 | 3209383 TheLooza
TheLooza's picture

i swear to god that looks like a peak between the legs the morning after partying hard in a faux german beer garden

Fri, 02/01/2013 - 17:41 | 3207586 King_of_simpletons
King_of_simpletons's picture

drooling ? It looks like shit to me.

Fri, 02/01/2013 - 15:16 | 3207002 Say What Again
Say What Again's picture


Now I know what I'm serving at my Super-Boil Party

Fri, 02/01/2013 - 16:06 | 3207245 LawsofPhysics
LawsofPhysics's picture

Getting heartburn just looking at it, pass the salad.

Fri, 02/01/2013 - 16:49 | 3207431 booboo
booboo's picture

Coulda fooled me, looks like staring down into a septic tank.

Fri, 02/01/2013 - 17:28 | 3207546 de3de8
de3de8's picture


Sat, 02/02/2013 - 18:12 | 3209658 Simplifiedfrisbee
Simplifiedfrisbee's picture

I'm sure it tastes better than it looks.

Fri, 02/01/2013 - 16:37 | 3207379 Mr. Magoo
Mr. Magoo's picture

I saw that same picture this morning, before i flushed

Fri, 02/01/2013 - 17:39 | 3207575 2bit Hoarder
2bit Hoarder's picture

damn you ... i literally just sat down with a bowl of top ramen.  fuck top ramen.  where do you live?

Fri, 02/01/2013 - 15:04 | 3206954 Enslavethechild...
EnslavethechildrenforBen's picture

Dollar now devaluing against the Zimbabwe...

Fri, 02/01/2013 - 17:24 | 3207533 Freddie
Freddie's picture

I knew ob-MAO would be another Robert Mugabe.  I was hoping I was going to be wrong.  Kyle Bass is right on target.

Sat, 02/02/2013 - 16:47 | 3209510 mightycluck
mightycluck's picture

Now you know why Homeland Security's new motto is "Always bring scissors to a gun fight."

At least according to this guy:

Fri, 02/01/2013 - 15:29 | 3207056 Henry Hub
Henry Hub's picture

***WTF is a micronutrient?***

They're the opposite of macronutrients. They're real tiny little fuckers.

Fri, 02/01/2013 - 16:46 | 3207413 Real Estate Geek
Real Estate Geek's picture

they're nutrients . . . With electrolytes!

Fri, 02/01/2013 - 17:30 | 3207553 de3de8
de3de8's picture

They ore the Teenie - tiny carrots, tomatoes,green beans, potatoes...........

Fri, 02/01/2013 - 15:38 | 3207094 tarsubil
tarsubil's picture

Micronutrients are vitamins and minerals (things your body needs in relatively small amounts like micrograms).

Macronutrients are protein, sugar and fat (things your body needs in relatively large amounts like grams).

Fri, 02/01/2013 - 16:43 | 3207400 Karlus
Karlus's picture

Micronutrients are what you get when you leverage synergies

Fri, 02/01/2013 - 16:40 | 3207385 Silver Bug
Silver Bug's picture

Once again Kyle Bass is spot on. Good interview.

Fri, 02/01/2013 - 17:00 | 3207464 neutrinoman
neutrinoman's picture

Micronutrient is just another name for a vitamin.

It's something you need in small amounts to catalyze much larger biochemical reactions in your body, or protect your body against other, harmful reactions. You can buy them in bulk for not much money from places other than HerbaLife.

Fri, 02/01/2013 - 18:38 | 3207714 847328_3527
847328_3527's picture
Postal Service says it’s immune from local traffic laws


“By attempting to hide behind an immunity claim, you are aiding and abetting your drivers in their blatant disregard for the traffic laws in East Cleveland, which have endangered other drivers, pedestrians and school children,” ATS attorney George Hittner wrote in his three-page response to Breslin, who received it on Thursday.


As if the postal rate increase wasn't enough.

Fri, 02/01/2013 - 15:16 | 3207003 whatsinaname
whatsinaname's picture

I think Dan Loeb, Ackman and Icahn will all make money on Herbalife. Its the folks in between who will lose out.

Fri, 02/01/2013 - 16:50 | 3207434 Praetorian Guard
Praetorian Guard's picture

Yes, very good. I would like to know how the fucking market went up so much today with all the BAD shit floating around?!?!?!?!?!? Anyone... Bueller, Bueller, Bueller...

Fri, 02/01/2013 - 18:17 | 3207683 H E D G E H O G
H E D G E H O G's picture

"Amid the euphoria of today's crossing of the Dow's Maginot Line at 14,000," should read DOW MARGINot Line. wtf anyway, All I  hear are "death throes" from this massive fraud!

Sat, 02/02/2013 - 15:21 | 3209360 Jay Gould Esq.
Jay Gould Esq.'s picture

"...[A]nd finally, on HLF, don't bet against Dan Loeb."

-- With respect to Loeb, nor on YHOO, either.

Sat, 02/02/2013 - 18:23 | 3209669 bobthehorse
bobthehorse's picture

The idea that America is the next Zimbabwe is ridiculous.

We're the next Japan.

If you print 15 trillon dollars and throw it into a black hole of debt, what velocity have you actually created?

Deflation.  Deflation.  Deflation.

Learn it.  Live it.  Love it.

Fri, 02/01/2013 - 14:47 | 3206883 Hippocratic Oaf
Hippocratic Oaf's picture

How dare he say that on CNBS


Fri, 02/01/2013 - 15:00 | 3206927 Peterus
Peterus's picture

Not a problem. Still there is 100 guys saying "the right thing" all the time for each troublemaker so this ship can appear peaceful and keep on sailing.

Oh, how it sails!

Fri, 02/01/2013 - 14:50 | 3206886 DoChenRollingBearing
DoChenRollingBearing's picture

Right.  A rising stock market (which is good) must be viewed through the lens of inflation.  Stocks are better than bonds, but not good enough in a bad inflationary environment.


Gold, bitchez!

Fri, 02/01/2013 - 14:53 | 3206902 mayhem_korner
mayhem_korner's picture



If inflation is high enough, a rising stock market is actually a falling one.  But as long as the "markets" are "priced" in dollars, the illusion will continue.

Fri, 02/01/2013 - 14:53 | 3206904 fonzannoon
fonzannoon's picture

He did not mention gold at all (or did i miss it?) He says apartment complexes, oil wells and global nationals. Oh and yeah, finance your apartment complex and oil well debt at fixed rates. Also he certainly did not see a bond crash coming anytime soon. I hate to be the ahole here. But what he said is not exactly what most people on here want to hear him say.

Fri, 02/01/2013 - 14:54 | 3206911 DoChenRollingBearing
DoChenRollingBearing's picture

I'm just a gold fanatic with a tinfoil hat...

Fri, 02/01/2013 - 15:06 | 3206960 Dr. Engali
Dr. Engali's picture

I find it hard to believe that bonds can't and or won't blow up when all of retail is piling into this "safe asset". I can't ever remember a time when something didn't blow up when everybody is piling in.

Fri, 02/01/2013 - 15:13 | 3206983 fonzannoon
fonzannoon's picture

I agree Doc, and if he is waivering on anything here, that is it. He says no one gives you a warning before it happens and then he quotes Junker. But the good news is, when it blows up your oil well and my apartment complex and that multinational corporation we started up last year will serve us well. So don't sweat the small stuff.

Fri, 02/01/2013 - 15:29 | 3207057 philosophers bone
philosophers bone's picture

RE: timing, doesn't the Fed need to unload their bond holdings before interest rates will be allowed to go up? 

Fri, 02/01/2013 - 15:25 | 3207045 philosophers bone
philosophers bone's picture

He must have missed the memo on bitcoins.  /sarc off

Fri, 02/01/2013 - 17:58 | 3207655 TraderTimm
TraderTimm's picture

Yeah, shame really. Then he'd be enjoying a +50% yield in January 2013 after a two-bagger in 2012.

Its okay, you can stick with your 14% yield in the STAWK market, where all the other bagholders are.

Fri, 02/01/2013 - 15:35 | 3207082 kliguy38
kliguy38's picture

Mr. Bass has been politely asked to tone down his remarks regarding gold. It would be ill-advised for him to not heed this advice. Mr. Bass swims in a very dark pool now and he knows that some very big sharks are in the pool.

Fri, 02/01/2013 - 16:42 | 3207397 debtor of last ...
debtor of last resort's picture

Every time he mentions 'inflation', he blinks with his left eye. Just like Bernanke blinks with both eyes mentioning inflation.

Fri, 02/01/2013 - 15:44 | 3207123 pursueliberty
pursueliberty's picture

I've been wanting to move out of single family into an apartment complex and I cannot find one in a 120 mile radius that would cash flow unless you were to put down over 30%.  Actually it is even greater than that if it is less than a few years old.  Must be cash buyers.  I'm going to end up building.

Fri, 02/01/2013 - 16:50 | 3207427 Karlus
Karlus's picture

It also seems like you cannot make money unless you are 95% occupied. Which might be fine for Section 8 folks, but get a few squaters and empty units and you are sucking wind.

Fri, 02/01/2013 - 14:53 | 3206906 ParkAveFlasher
ParkAveFlasher's picture

Inflation?  What inflation? 


Fri, 02/01/2013 - 14:57 | 3206916 fonzannoon
fonzannoon's picture

That one is a bit stale

"Gold is not the panecea everyone thinks it is"

Fri, 02/01/2013 - 15:03 | 3206943 Whiteshadowmovement
Whiteshadowmovement's picture


Fri, 02/01/2013 - 15:39 | 3207100 kito
kito's picture

fonz gold isnt a productive asset!! now what?!? i thought bass was buying up enough gold bars to fence in his compound!!!...........

Fri, 02/01/2013 - 15:46 | 3207134 akak
akak's picture

Kito, gold may not be a "productive" asset, but I will take a non-productive asset over a destructive asset (*cough*, bonds, *cough*, US Trashuries, *cough* *cough*) any day!

Fri, 02/01/2013 - 15:50 | 3207163 fonzannoon
fonzannoon's picture

Everyone keep it down please, CNBC is telling me about the absolute avalanche of money that is about to pour into equities.

Wealth effect bitches. Coming to a rich neighborhood near you (but not yours).

Fri, 02/01/2013 - 16:49 | 3207425 Northeaster
Northeaster's picture

If retail goes back in it would only be out of desperation looking for yield. ETF's are outperforming stocks, and you have to be VERY good in stocks for a whopping 1% return if that. For the amount of work, it's simply not worth it. For the average retail mom & pop it's fiscal stupidity gambling with worse odds than a casino, not to mention they don't have the kind of money to be making those gains anyways.

The "risk" effect that has been created and is only being driven by the need to earn more than the no interest we get sitting on cash (which the majority of Americans don't have).

Fri, 02/01/2013 - 17:00 | 3207462 fonzannoon
fonzannoon's picture

Jim we got a buyer on Line 1 who wants some etf's. Please hold!

Fri, 02/01/2013 - 17:39 | 3207574 kito
kito's picture


Fri, 02/01/2013 - 14:52 | 3206898 Cognitive Dissonance
Cognitive Dissonance's picture

I think I'm in love with Kyle Bass.

<Don't tell Mrs. Cog.>  :)

Fri, 02/01/2013 - 14:53 | 3206899 VonManstein
VonManstein's picture

Sell $$$ sell TSY and in a month or two (or three) sell Stocks.

Buy metal. Now and for the next month


Fri, 02/01/2013 - 14:58 | 3206929 Osmium
Osmium's picture

Exactly.  And don't forget that brass and lead are metals too.

Fri, 02/01/2013 - 16:03 | 3207129 VonManstein
VonManstein's picture

Just to clarify I am super bearish stocks and have no position, just not quite time to fall for them yet. Even though Tyler’s are desperate for it to happen so they can start a post with “sure enough”

I have been commenting on here for a while about selling TSY and have been junked for it. Everyone here seems to think Benny is in control forever and just because primary dealers are increasing positions this is confirmation that they must go higher. Clearly not the case and they are prob increasing position to stop a collapse of the bond market. Something they can postpone or blunt but not prevent.  FED obviously buying everything. The rotation thing is false as Tyler’s point out but the sea of liquidity is not.  Why wouldn’t stocks go up?

I see the USD TSY and Stock market all putting in their respective tops within two months of each other. HS top is obvious in DX and NAS and TSY is on the way. Also GSR same pattern.

What I mean is when its time to sell stocks it does not make it time to buy DX or TSY as they will not recover as they have in the past. FX will see major shifts I think the "FX risk" trade will be altered and new safe havens emerge. the status quo will change.. much to the bickering of financial pundits and bloggers.

buying lots of gold and silver as lift of will commence within few weeks. Probably on an equities pull back. And when they really blow upwards that will probably be the top for stocks.

Ye, pretty much all


Fri, 02/01/2013 - 18:00 | 3207661 ZeroAvatar
ZeroAvatar's picture

Lately, brass and lead are as rare as Obama's Tears.

Fri, 02/01/2013 - 14:53 | 3206900 laomei
laomei's picture

Zimbabwe was doing just fine... until they made white people mad when they took back the land that the white people stole from them in their own country.  Which was met with sanctions designed to do no less than completely destroy the economy.

Fri, 02/01/2013 - 15:03 | 3206944 Peterus
Peterus's picture

Certainly, any income produced by these expropriated whiteys didn't count for much of a loss. Also wise policies of Mugabe in economy were really great. It was all these nasty sanctions.

Fri, 02/01/2013 - 15:40 | 3207107 laomei
laomei's picture

The farming was primarily focused on cash crops previously, a shift was made to crops that the population actually needed.  The land reform has actually been very successful, and the only reason there are issues with it is due entirely to racism and hatred for kicking whitey off his stolen land.. which was taken with force originally.

Fri, 02/01/2013 - 15:50 | 3207174 akak
akak's picture

Since neither the Ndebele nor the Shona originally inhabiting what is now Zimbabwe had any concept of the private ownership of land, is it actually strictly logical to claim that the white Rhodesians "stole" the land from them? 

I am not defending prior European colonization, but the issue is not quite as black and white (no pun intended) as you make it seem.

Fri, 02/01/2013 - 15:55 | 3207192 laomei
laomei's picture

Theft from a collective is still theft.  I guess by your logic, I can just start roping off co-ops and parks and claiming them as mine.  After all, it's not like anyone owns them anyways.

Fri, 02/01/2013 - 15:58 | 3207212 akak
akak's picture

Well, then, the Shona and Ndebele are equally guilty, for they both stole the land from the original inhabitants, the San ("Bushmen") people (and not very long before the arrival of the Europeans, too), who in turn stole it from somebody else, who in turn stole it from Homo neanderthalis, who in turn stole it from Homo erectus, who in turn .....

Fri, 02/01/2013 - 16:00 | 3207219 fuu
fuu's picture

Someone owns the co-op building and the state/city does own the park. There are not many examples of land not being owned in the western world.

Fri, 02/01/2013 - 16:54 | 3207445 Karlus
Karlus's picture

Wholeheartedly agree! Let them degrade into hacking each other up with machettes, warlords hoarding resources and famine with flies on eyes for everyone.

But dont you damn dare show me any of that crap on the telly. I dont want to see SallyS or that old whitebeard posing with some kid with a swollen belly. F that.

Or we can run things and build some factories along with some clean water and some food so they show up to make Nike sneakers on time.


Up to you. Live by the sword or die by it.

Fri, 02/01/2013 - 15:07 | 3206963 thedrickster
thedrickster's picture

Nonsense, Rhodesia simply reverted to Zim.

Fri, 02/01/2013 - 21:01 | 3207970 lakecity55
lakecity55's picture

Comrades, this is why Dear Leader must take all the white man has for his crimes and place him into the work camps.

He will be re-educated to properly serve The Glorious State!

Change you can believe in, Comrades!

Fri, 02/01/2013 - 14:53 | 3206907 Mongo
Mongo's picture

Indeed, Thank you Ben!

Fri, 02/01/2013 - 14:55 | 3206909 Banksters
Banksters's picture

I often hear people say things like, " I spent 300.00 dollars on blah blah, but that was when it was a lot of money."   Man, I want to slap them upside the head, if nothing more than to push them to the rest of the equation.   WHY IS IT OK FOR A CABAL OF PRIVATE BANKING INTERESTS TO DEVALUE THE CURRENCY?  

Fri, 02/01/2013 - 15:30 | 3207062 Stuntgirl
Stuntgirl's picture

I love when people give you the amount and date of a purchase.

"That cost me 1k€ back in 2003!"   "I paid 200€, but that was in 2001"

Even better when they convert € sums to pesetas to put a rational number to the expense.

"You want to charge me that much for (whatever)?? That is XXXX PESETAS!!!"



Fri, 02/01/2013 - 14:56 | 3206912 CheapBastard
CheapBastard's picture

Kyle is wrong on his housing prediction:


Americans Rip Up Retirement Plans


"Nearly two-thirds of Americans between the ages of 45 and 60 say they plan to delay retirement, according to a report to be released Friday by the Conference Board. That was a steep jump from just two years earlier, when the group found that 42% of respondents expected to put off retirement.

The increase was driven by the financial losses, layoffs and income stagnation sustained during the last few years of recession and recovery, said Gad Levanon, director of macroeconomic research...."


No jobs no money.

Fri, 02/01/2013 - 15:00 | 3206926 fonzannoon
fonzannoon's picture

I think Kyle anticpates that you and I won't be able to afford a home, just rent one...and he will be the landlord. Rent will be the new form of interest that the bank no longer pays.

Fri, 02/01/2013 - 15:04 | 3206951 Whiteshadowmovement
Whiteshadowmovement's picture

Youre on fire with these deductions here fonz!

Fri, 02/01/2013 - 15:08 | 3206972 fonzannoon
fonzannoon's picture

It's brutal and I hate doing it but I am just listening to the words coming out of his mouth. I have a lot of respect for Schiff because he just stands in the end zone and waits there for the hail mary, which is probably coming. Bass is playing the game as the game goes, and he thinks it may go on for a long time. His advice (rental apartments and oil wells etc) don't seem to be geared for the average guy. I think as bad as this sounds, he thinks the average guy is fked.


Fri, 02/01/2013 - 15:18 | 3207012 Temporalist
Temporalist's picture

You may be right but he is among hedge funders on an investment channel talking about investing.  He's not being interviewed by AARP or something.  Just addressing the appropriate audience.

Fri, 02/01/2013 - 15:30 | 3207063 fonzannoon
fonzannoon's picture

CNBC has no audience. Just me.

Fri, 02/01/2013 - 15:22 | 3207031 Whiteshadowmovement
Whiteshadowmovement's picture

I think hes comepletely right- it tough to define avg. guys though because I think theyll make sure as long as you have a 401k or a Pension,above a certain amount, that the "wealth effect" from the returns there will be sufficient to maintain middle class life, especially for retiring baby boomers. Of course the wealth affect will only add wealth to the top 25% or so of people is STAWKS, while the rest will comfortably beat inflation.

If you arent that lucky, then you will get sucked in to the middle/poor underclass where the EBT card willmrepresent the majority of your income. I cant wait to see the first "platinum" and "black" EBT cards

Fri, 02/01/2013 - 15:59 | 3207218 fonzannoon
fonzannoon's picture

I think you are right, but man they are trying to thread a needle here.

Fri, 02/01/2013 - 15:05 | 3206956 ParkAveFlasher
ParkAveFlasher's picture

Nobody ever considers what happens to the value of rental property when the area can not sustain the same rents as before.  If jobs dwindle, so do salaries, and you can hardly charge rent if area salaries do not keep pace.

Or, do we all live in the UWS?

Fri, 02/01/2013 - 15:18 | 3207022 Temporalist
Temporalist's picture

Tent cities are all the rage.  I hear they are called Obamavilles.

Fri, 02/01/2013 - 15:08 | 3206969 Uber Vandal
Uber Vandal's picture

Then the problem becomes:

What happens when no one can afford to rent?

What happens when I can no longer afford to pay property taxes / repairs / maintenance / bringing property up to local codes even if I raise the rent?

What happens when my tenants open a Meth lab in my unit, how liable for clean up will I be?

What happens when my tenants trashes the place and has no assets to seize to recoup the costs?

How do I evict my tenant when they refuse to pay?

Believe it or not, but I know people who got out of renting for most of those reasons above. It is not necessarily the cash cow that many would have you believe it to be.


Fri, 02/01/2013 - 15:14 | 3206998 fonzannoon
fonzannoon's picture

Your monthly check from tha gubbamint will sustain your rent. So the taxes that the big fish pay to support the welfare state go right back into their pocket. It's beautiful man.

Fri, 02/01/2013 - 15:16 | 3207006 Whiteshadowmovement
Whiteshadowmovement's picture

Spot fucking on!

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