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Some Words Of Advice From Kyle Bass

Tyler Durden's picture


Michael Lewis' latest compilation of Vanity Fair articles into book format, Boomerang, is the usual entertaining romp around those back and front waters of the world that are currently on the verge of bankruptcy: from Greece, to Ireland, to Germany and, of course, to California. The premise at its core is an interview that the former Salomon bond salesman had with investing wunderkind Kyle Bass several years back which inspired to him to ask what it is that the Texan saw three years ago that so few others, due to a permafrosty cognitive bias or what have you, could (i.e., that the world is bankrupt and getting much worse). Oh, did we say wunderkind? We meant billionaire. Because unlike that other "anti-Midas" who only piggybacked on the good ideas, while blowing up LPs when left to his own non-Goldman Sachs facilitated devices, Bass actually could always see the big picture for what it is. So courtesy of Lewis' latest book, here are three pieces of advice from Bass to people everywhere, which will surely bring the fanatically jealous anti-gold crew to accusations that Bass made his billions from buying and reselling tinfoil hats.

On gold:

A guy sitting in an office in Dallas, Texas, making sweeping claims about the future of countries he’d hardly set foot in: how on earth could he know how a bunch of people he’d never met might behave? As he laid out his ideas I had an experience I’ve often had, while listening to people who seem perfectly certain about uncertain events. One part of me was swept away by his argument and began to worry the world was about to collapse; the other part suspected he might be nuts. “That’s great,” I said, but I was already thinking about the flight I needed to catch. “But even if you’re right, what can any normal person do about it?”


He stared at me as if he’d just seen an interesting sight: the world’s stupidest man.


“What do you tell your mother when she asks you where to put her money?” I asked.


“Guns and gold,” he said simply.


“Guns and gold,” I said. So he was nuts.


But not gold futures,” he said, paying no attention to my thoughts.


"You need physical gold.” He explained that when the next crisis struck, the gold futures market was likely to seize up, as there were more outstanding futures contracts than available gold. People who thought they owned gold would find they owned pieces of paper instead. He opened his desk drawer, hauled out a giant gold brick, and dropped it on the desk. “We’ve bought a lot of this stuff.” At this point, I was giggling nervously and glancing toward the door.

So many others were giggling along. They were giggling all the way as gold rose from $800 to $1900. Probably not giggling now...

On nickels:

He still owned stacks of gold and platinum bars that had roughly doubled in value, but he remained on the lookout for hard stores of wealth as a hedge against what he assumed was the coming debasement of fiat currency. Nickels, for instance.


“The value of the metal in a nickel is worth six point eight cents,” he said. “Did you know that?”


I didn’t.


“I just bought a million dollars’ worth of them,” he said, and then, perhaps sensing I couldn’t do the math: “twenty million nickels.”


“You bought twenty million nickels?”




“How do you buy twenty million nickels?”


“Actually, it’s very difficult,” he said, and then explained that he had to call his bank and talk them into ordering him twenty million nickels. The bank had finally done it, but the Federal Reserve had its own questions. “The Fed apparently called my guy at the bank,” he says. “They asked him, ‘Why do you want all these nickels?’ So he called me and asked, ‘Why do you want all these nickels?’ And I said, ‘I just like nickels.’”


He pulled out a photograph of his nickels and handed it to me. There they were, piled up on giant wooden pallets in a Brink’s vault in downtown Dallas.


“I’m telling you, in the next two years they’ll change the content of the nickel,” he said. “You really ought to call your bank and buy some now.”

And on how to prepare for what is coming and why it is coming:

We hopped into his Hummer, decorated with bumper stickers (God Bless Our Troops, Especially Our Snipers) and customized to maximize the amount of fun its owner could have in it: for instance, he could press a button and, James Bond–like, coat the road behind him in giant tacks. We roared out into the Texas hill country, where, with the fortune he’d made off the subprime crisis, Kyle Bass had purchased what amounted to a fort: a forty-thousand-square-foot ranch house on thousands of acres in the middle of nowhere, with its own water supply, and an arsenal of automatic weapons and sniper rifles and small explosives to equip a battalion. That night we tore around his property in the back of his U.S. Army jeep, firing the very latest-issue U.S. Army sniper rifles, equipped with infrared scopes, at the beavers that he felt were a menace to his waterways. “There are these explosives you can buy on the Internet,” he said, as we bounded over the yellow hills. “It’s a molecular reaction. FedEx will deliver hundreds of pounds of these things.” The few beavers that survived the initial night rifle assault would wake up to watch their dams being more or less vaporized.


“It doesn’t exactly sound like a fair fight,” I said.


“Beavers are rodents,” he said.


Whatever else he was doing, he was clearly having fun. He’d spent two and a half years watching the global financial system, and the people who ran it, confirm his dark view of them. It didn’t get him down. It thrilled him to have gotten his mind around seemingly incomprehensible events. “I’m not someone who is hell-bent on being negative his whole life,” he said. “I think this is something we need to go through. It’s atonement. It’s atonement for the sins of the past.

The take home: Atonement is coming, bitchez. Beavers beware.

For those who want much more, here is a one hour interview in which Todd Groome and Toni Moss spoke with Kyle at AmeriCatalyst 2010 in Austin in September, asking him about his thoughts on prospects for housing market recovery, current policy issues and national debt implications, global debt imbalances and his perspectives on the influence of policy on the timing, sequence and magnitude of potential sovereign defaults and debt restructurings. Fascinating stuff.


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Sun, 10/16/2011 - 13:43 | 1778940 X.inf.capt
X.inf.capt's picture


gold and guns...


well, i see ZH is making its mark...

if people with BIG money are getting ready for a 'controlled' or uncontrolled default,,look out!

Sun, 10/16/2011 - 13:48 | 1778961 Stoploss
Stoploss's picture

Wate, i thowt wee wass ignernt rednex..

Sun, 10/16/2011 - 13:50 | 1778966 X.inf.capt
X.inf.capt's picture

nope, i dont think so....

i think you guys were ahead of the curve...

as usual...

Sun, 10/16/2011 - 14:19 | 1779013 Bananamerican
Bananamerican's picture

“I think this is something we need to go through. It’s atonement. It’s atonement for the sins of the past.

I've thought this since W...

We've literally got hell to pay...

Sun, 10/16/2011 - 14:23 | 1779023 X.inf.capt
X.inf.capt's picture

i've always thought it was going to be bad...

just how we prepare now will determine how bad it will be for each of us...

but it will be bad...

Sun, 10/16/2011 - 15:36 | 1779178 Pladizow
Pladizow's picture

Unlike Bass, I prefer dimes to nickels, whether they be pre 1965, blond, brunette or red head!

However, like Bass, I too enjoy exploding on beavers!

Sun, 10/16/2011 - 16:02 | 1779244 X.inf.capt
X.inf.capt's picture

im a dime hound, too..

i dont go for gold, but everyone has a preference...

im not a gun guy either...well, anymore...

red beavers are pretty favorite!

Sun, 10/16/2011 - 17:00 | 1779352 Idiot Savant
Idiot Savant's picture

Kyle's a smart guy, but what's he going to do with those nickles? It's illegal to melt them. Even if he finds someone willing to break the law, they're going to want a cut. Perhaps I'm missing an angle. Additionally, why would he divulge the fact that he has land, weapons, and explosives? Sounds like an invitation to the ATF to me.

Sun, 10/16/2011 - 17:11 | 1779366 akak
akak's picture

It will only remain (technically) illegal to melt those five-cent coins until they are no longer produced by the US Mint.

It was also illegal at one time to melt 90% silver coins --- do the smelters have to worry about today?

Personally, though, I think the tactic is ridiculous --- if one wants to hold physical metals, gold, silver, platinum or palladium are vastly less bulky, and have a much more established market than cupro-nickel alloy.If the metal in the coins were today worth, say, four or five times their face value, then one might have justification for hoarding them, but at a 10 or 15% differential, why the fuck would one bother?  Assaying and processing fees would easily eat up that small current value advantage.

Sun, 10/16/2011 - 17:23 | 1779396 Motley Fool
Motley Fool's picture

If he betting on HI occurring in the USA then a million dollar's worth of nickels would be good for exchange, to procure what he needs during such an event.


A million dollars is spending money for a billionaire after all.

Sun, 10/16/2011 - 17:32 | 1779413 Mr. White
Mr. White's picture

He can make a hell of a battery with all those nickels, like Walter did when caught in the desert in Breaking Bad. Plus, it's like holding cash with some real value as insurance.

Sun, 10/16/2011 - 17:32 | 1779414 jedimarkus
jedimarkus's picture

Nickel?  Ha, put on the brass/lead/copper combo spread..... = bullets....

Sun, 10/16/2011 - 17:33 | 1779415 Mr. White
Mr. White's picture

He can make a hell of a battery with all those nickels, like Walter did when caught in the desert in Breaking Bad. Plus, it's like holding cash with some real value as insurance.

Sun, 10/16/2011 - 18:20 | 1779502 juslen
juslen's picture

Yes, but if he is WRONG.. all he has to do is cash in his nickels and take a fractional loss. If he buys silver or gold, he has to pay a high premium, and if the government doesn't print money, prices may fall drastically. If you buy nickels by the MILLIONS the bank is definately going to charge some type of fee to get you all the nickels you ordered. So there is risk involved. But like I said, if things turn around, he can cash the nickels back in for a minimal loss. If he is right.. well.. he paid around spot for copper and nickel and if he can sell it for fair market value, he could make a 50+ percent profit.

Sun, 10/16/2011 - 19:02 | 1779594 myne
myne's picture

Hah that's actually brilliant.

Downside protection against deflation and upside gains based on inflation.

Sun, 10/16/2011 - 21:28 | 1779960 Upswaller
Upswaller's picture

It gets even better.  If or when the government decides to revalue our currency by knocking off a couple of zeros and re-issuing "new" paper money, history shows governments LEAVE the coins as-is.  So the coins KEEP their face value, while the paper loses big time.

So there you have it.


Sun, 10/16/2011 - 19:48 | 1779675 Things that go bump
Things that go bump's picture

On the other hand, if we all wake up one day to find our government has gifted us with a brand new currency, say at an exhange rate of 10:1 or even the favorite of North Korea - 100:1, governments seldom bother with the coinage and those nickels will probably make the transition at a happy ratio, each being worth 1/20 of a new currency dollar. So while those not so foresighted have seen their net value drop to $10,000 for every $100,000, the value of his nickels will have made the transition intact.  Smart guy.

Sun, 10/16/2011 - 20:06 | 1779723 Manthong
Manthong's picture

For $500 you can get 5 bank bricks - 10,000 nickles, and at worst, you have $500 cash that will tone the biceps.

At best, you have modest amount of coins that can make the transition to low level bullion when the government decides to stop making them at a loss and might have incremental value in Barter Town.


Wed, 11/16/2011 - 01:46 | 1881755 Don Keot
Don Keot's picture

Two weeks ago I went right down to my bank and ordered $500 in nickels.  The head teller said she would have them in three days.  She also asked why I wanted the nickels, so I said "I like nickels", that was it.  I felt pretty special when they rolled out my nickels on their bullion cart, all the way out to my car.  $100 bricks of nickels still look pretty good.  All brand new 2011 in rolls, in bricks.  

Fri, 11/04/2011 - 21:03 | 1847224 James
James's picture

3 - 4 weeks ago on ZeroHedge a young 20 something who lamented his inability to get in the game of PMs because of his minimum wage job left him broke w/not alot of cash to spend.

I suggested he get rolls of nickels at banks and casinos because of the spread.

Also the potential of finding pre- '65 issue

 I was laughed at by some ZeroHedge posters.

For the record, this was not my idea but James Wesley Rawles over @ has a story on this subject


Sun, 12/18/2011 - 11:24 | 1991409 rehypothecator
rehypothecator's picture

Up until 1964, nickels were 25% nickel and 75% copper.  But starting in 1965, they changed the composition to 75% copper and 25% nickel.  

Mon, 05/28/2012 - 16:59 | 2470109 cornedmutton
cornedmutton's picture

I used to have a dick and two balls.  Yesterday, I woke up and had two balls and a dick.  Wild!

Sun, 10/16/2011 - 18:53 | 1779570 disabledvet
disabledvet's picture

i thought diamonds had the "ounce per dollar" victory hands down? ah, i understand. governments don't back anything in diamonds.

Sun, 10/16/2011 - 20:21 | 1779756 Quaderratic Probing
Quaderratic Probing's picture

I filled my basement with 14 tons of newspapers, at $3 a ton........

Mon, 10/17/2011 - 06:01 | 1780622 merizobeach
merizobeach's picture

Need a light?

Sun, 10/16/2011 - 17:34 | 1779421 Dugald
Dugald's picture

Hence the nickles, bribe money......

Sun, 10/16/2011 - 23:15 | 1779733 Gene8696
Gene8696's picture

This is Texas... Land, weapons, and explosives are just the norm. Yes explosives are very legal to farm & land owners... In fact the mixture that was used to blowup the fed building in Oklahoma City, is exactly what ranchers use to remove tree stumps, beaver dams, ground hogs, etc.. The only difference is ranchers don't use truckloads of the stuff.

Short of the nickels, his stockpile sounds like many of my neighbors.

Mon, 10/17/2011 - 06:05 | 1780627 merizobeach
merizobeach's picture

Wait a minute..  You're telling us that a bomb in a truck parked on the street blew off half of a concrete building, including the supporting columns?  Ok, physics major, nice try..

Mon, 10/17/2011 - 08:46 | 1780888 Gene8696
Gene8696's picture

Well I guess I am telling you that... But my point is, bags of that same mixture are in barns all around here, and it's perfectly legal.

Mon, 10/17/2011 - 23:57 | 1784106 merizobeach
merizobeach's picture

I take your word that it is all perfectly legal.  I've no reason to doubt it.  Sounds like that's the law.


I will never believe, though, that the damage to OKC federal building was done by a fertiziler bomb on the street and not explosives attached to the supporting columns of the building.  That's just physics.


If you haven't, check into the story and death of OKC police officer Terry Yeakey.

Sun, 10/16/2011 - 21:29 | 1779961 mickeyman
mickeyman's picture

In Ghana we have seen old (copper) coins trading as tokens in the market, despite the fact that their face value was less than 1/10,000th of a cent. You don't need to melt them--they are a known weight of metal. The same could be true of nickels (and old pennies) after a currency event.

Mon, 10/17/2011 - 00:06 | 1780312 Ranger4564
Ranger4564's picture

Never mind... some clever people above made more interesting points.

Mon, 10/17/2011 - 06:23 | 1780642 Sgt.Sausage
Sgt.Sausage's picture

What do folks do with all those silver dimes, quarters, halfs and dollars from 50 years ago.

I don't know a single individual who melts them down - legal or not - but they're still worth a metric shit-ton more than face value today. A quarter, 50 years ago, was 25 cents. Now it's, what, about 600 cents?

So, too, will the nickels go.



Sun, 10/16/2011 - 16:21 | 1779276 Taterboy
Taterboy's picture

As long as he doesn't shave the beavers, he's okay in my book.

Sun, 10/16/2011 - 18:20 | 1779503 lincolnsteffens
lincolnsteffens's picture

Just a little trim around the edges and snip the split ends.

Sun, 10/16/2011 - 15:01 | 1779091 knukles
knukles's picture

"W" as in Woodrow Wilson, right?

Sun, 10/16/2011 - 22:20 | 1780118 Dantzler
Dantzler's picture

Nicely done, knukles.

Sun, 10/16/2011 - 14:25 | 1779027 Pure Evil
Pure Evil's picture

And the dude pays good money on the value of tinfoil hat trade in's.

My neighbor just bought an upgraded aluminum foil hat with all the bells and wistles.

Sun, 10/16/2011 - 15:15 | 1779128 X.inf.capt
X.inf.capt's picture


well, evil

how can someone preparing for an emergency be wrong...

FEMA says stock up, in case of an disaster

i think most ZH'ers see a disaster coming...

no tin foil hat needed for that...

Sun, 10/16/2011 - 15:33 | 1779185 Pure Evil
Pure Evil's picture

We'll all need tinfoil hats soon, keep the RFID chip implanted in your brain from networking with skynet.

They'll also serve another purpose.

Zombies are attracted to the Delta waves generated by the electro-chemical impulses of your neurons.

Therefore in order to keep the Mexican zombie hordes from discovering your whereabouts, you'll need a 100% aluminum foil hat to attenuate the signals produced by your delicious brain.

Brains, the delicacy of zombies.

Sun, 10/16/2011 - 16:53 | 1779343 flattrader
flattrader's picture

Tin foil hats don't protect you from beaming.  They enhance it.

Here is THE definitive study--


On the Effectiveness of Aluminium Foil Helmets: An Empirical Study

Ali Rahimi1, Ben Recht 2, Jason Taylor 2, Noah Vawter 2
17 Feb 2005

1: Electrical Engineering and Computer Science department, MIT.
2: Media Laboratory, MIT.


>>>Among a fringe community of paranoids, aluminum helmets serve as the protective measure of choice against invasive radio signals. We investigate the efficacy of three aluminum helmet designs on a sample group of four individuals. Using a $250,000 network analyser, we find that although on average all helmets attenuate invasive radio frequencies in either directions (either emanating from an outside source, or emanating from the cranium of the subject), certain frequencies are in fact greatly amplified. These amplified frequencies coincide with radio bands reserved for government use according to the Federal Communication Commission (FCC). Statistical evidence suggests the use of helmets may in fact enhance the government's invasive abilities. We speculate that the government may in fact have started the helmet craze for this reason.<<<

I thought ZHers where smarter than to fall for the obvious NWO propaganda on tin foil hats.


Sun, 10/16/2011 - 17:13 | 1779377 bread baker wshtf
bread baker wshtf's picture


Sun, 10/16/2011 - 17:12 | 1779382 RockyRacoon
RockyRacoon's picture

Your research tax dollars at work.  

Sun, 10/16/2011 - 17:29 | 1779408 X.inf.capt
X.inf.capt's picture

hey, rocky, please tell me these guys arent serious....


Mon, 10/17/2011 - 06:10 | 1780631 merizobeach
merizobeach's picture

I've almost got the $250K, then I can buy my own 'network analyser'!

Sun, 10/16/2011 - 17:02 | 1779349 Dave Thomas
Dave Thomas's picture

I only use genuine 3M Velostat ® in my deflector beanies! It keeps the aliens away, but also much lighter!


P.S. That MIT Team works for the Illuminanti so what do you think THEY want you to think!

Sun, 10/16/2011 - 17:08 | 1779370 flattrader
flattrader's picture

I thought we were trying to stop the government from beaming messages into our brains?  What do aliens have to do with this?

Stop trying to obfuscate the issue!

[Alien abduction may be the only way to avoid getting swept up in the Great Reset...So there.]

Sun, 10/16/2011 - 13:48 | 1778962 CrazyCooter
CrazyCooter's picture

Sounds like he's just a good ol' boy ...



Sun, 10/16/2011 - 13:52 | 1778969 X.inf.capt
X.inf.capt's picture

hey, cooter,

he sounds like he see's something...


Sun, 10/16/2011 - 14:02 | 1778979 CrazyCooter
CrazyCooter's picture

It didn't occur to me just now, but I think Kyle Bass is part of the Bass family from Ft Worth.

The Bass family is an interesting clan. You can read a bit here ...

Short version is the Bass family is multi-generational business owners involved in a lot of stuff. They are very active in Ft Worth with regards to arts, philanthropy, and such. They just seem like a class act for the most part.

Besides, if I had a couple billion, I would have a huge ranch, explosives, and sniper rifles too ... LOL



Sun, 10/16/2011 - 14:26 | 1779029 X.inf.capt
X.inf.capt's picture

well, they dont sound like good ol' boyz...

they sound like the're connected...

and they see something...

Sun, 10/16/2011 - 14:36 | 1779047 Dr Hackenbush
Dr Hackenbush's picture

total reset will only affect the bottom 99% - and there’s the rub. 

Sun, 10/16/2011 - 14:48 | 1779062 X.inf.capt
X.inf.capt's picture



but i think this was planned long before i was born...

Sun, 10/16/2011 - 16:07 | 1779252 FEDbuster
FEDbuster's picture

Let's not forget Kyle encouraged the Univ. of TX to buy a billion dollars worth of physical gold:

Here is someone who puts his money where his mouth is.

Beans, bullets and bullion, bitchez!

Sun, 10/16/2011 - 16:25 | 1779284 X.inf.capt
X.inf.capt's picture

well, i looks like the awakening has come...

ZH was right, and we were here...

Sun, 10/23/2011 - 18:55 | 1802878 CrazyCooter
CrazyCooter's picture


Late to the thread, but my old man is from UT (Vietnam GI bill with kids while on AD and all that). Anyway, I called him to talk to him about that. I said, you need to call you alum and get them to cast that shit into a Bevo calf to roll out before the ball games ... the other universities can't keep up with that ... he DIED laughing on the phone. Priceless father-son moment, will never forget it.

Disclosure: he is a Masters in Finance and work for years at the RRC in Texas as an auditor. That man can tell some stories that will just knock your socks off. He is still holding back on the good ones, but as he gets older, I get new episodes. :-)



Sun, 10/16/2011 - 19:32 | 1779654 Seer
Seer's picture

Try "go forth and multiply" as the origin.  Bad design input when we're limited to a single planet: but then again, perhaps it was a test to see if we could get off the planet, in which case there was in fact a humane reason for those V2 Rocket scientists... (who were to later be lavished with money to work for NASA- who says that [war] crime[s] doesn't pay?)

And those tin-foil hats?  Yeah, part of the plan (most won't believe that they actually help facilitate receiving and transmitting signals, believing that they hinder it, but that's how the "plan" gets things done; and when those folks get bombarded with signals they'll be so confused as to appear, well, stupid)!

Mon, 10/17/2011 - 01:56 | 1780494 StychoKiller
StychoKiller's picture

Ag & Au are ductile metals, wonder how long it would take to fashion a helmet out of some kruggerrands...

Sun, 10/16/2011 - 18:57 | 1779582 cossack55
cossack55's picture

I am quite certain at an instinctual level, that part of the 99% will ensure that some of the 1% will have an ooportunity to enjoy the party.  The planet is not that large and history (REAL history) is a good guide.

Sun, 10/16/2011 - 14:30 | 1779036 macholatte
macholatte's picture


 "In the end, it is most likely that after Greece and the next peripheral country begin to hard default, Germany will exit the [European Monetary Union] and recapitalize their own banks. After recently conducting a population study on the German people, we have determined that the overwhelming majority of the people of Germany think that they would be better off never having formed the euro in the first place. Two thirds of the people do not think that they have any obligation to bail out profligate members of the EMU. The market's hopes rest upon Germany and the [European Central Bank] going 'all-in' at some point in the future. I don't think that is likely at all.


Germany Will Attempt to Default Greece: Kyle Bass

Sun, 10/16/2011 - 14:38 | 1779042 Pure Evil
Pure Evil's picture

A few sniper rifles won't protect you from the zombie hordes streaming up from Mexico once the system implodes.

Better stock up on some .50 cal mini-cannons & .50 cal mini & STA 52 LAR & MK 49


Sun, 10/16/2011 - 14:39 | 1779049 DosZap
DosZap's picture

Pure E,

Bet your ass,he has buddies, and a lot of them(paid/mercs/friends), and the money to pay for whatever he wants. I would wager unless you have an Apache,and a wad of RPG's, you won't set foot on his place and live.

Why do I think this?, because if I had Bass $$$ you wouldn't, and my money is as smart as he is, he's over prepared.

Folks like Bass,play by different rules than mere moratls.

Sun, 10/16/2011 - 14:58 | 1779052 Pure Evil
Pure Evil's picture

So I guess that leaves the rest of us to be brain fodder for the zombies that speak spanish.

Still, after about 20 million zombies surround your compound, your bound to run out of bullets, best to have a few tactical mini nukes on hand to help thin out the herd

Atomic cannon

Or a few of these to clear a path to safety:


Sun, 10/16/2011 - 15:07 | 1779106 Gully Foyle
Gully Foyle's picture

Pure Evil

The only realistic Zombie solution appears in Biozombie.

If you can't beat them join them.

Sun, 10/16/2011 - 17:09 | 1779372 Dave Thomas
Dave Thomas's picture

Much too unwieldly. Need a cute chubby little bugger like this:

Sun, 10/16/2011 - 19:17 | 1779618 Pure Evil
Pure Evil's picture

Very cool!

Its now on my Christmas list of new weapons to add to my arsenal.

When the zombies come, they won't be asking questions, they'll just be kickin' ass and takin' brains.

Sun, 10/16/2011 - 17:49 | 1779449 Dugald
Dugald's picture

Nickels make great shrapnel.........

Sun, 10/16/2011 - 15:05 | 1779096 Gully Foyle
Gully Foyle's picture


Riddle me this, what does he pay with when money is worthless? How interesting it will be to see rich people trapped in compounds with hired help looking around at the oppulence and realizing this could EASILY be theirs.

Sun, 10/16/2011 - 15:35 | 1779188 johny2
johny2's picture

that is why he bought nickels. However goldbug should keep its mouth shut, I don't understand why he gave this interview.

Sun, 10/16/2011 - 16:51 | 1779340 buyingsterling
buyingsterling's picture

He has more than anyone could ever need. Too bad more of the .01% aren't like him.

That makes me think that the OWS crowd has to have their general thesis wrong. When you start assuming 1%, that includes a whole lot of honest people who aren't connected and just made a lot of good decisions. If the OWS crowd were really awake, they'd call themselves the 99.99%.

Sun, 10/16/2011 - 17:28 | 1779406 Idiot Savant
Idiot Savant's picture

Bass has money, but I doubt he's close to being part of the upper one percent. Of course, I don't know the threshold for being in the one percent club; 500+ million?

Sun, 10/16/2011 - 19:20 | 1779630 Pure Evil
Pure Evil's picture

Very true!

When you talk about individuals with multi-billions, Gates, Buffet, Carlos Slim, etc.

500 million+ is just the entry fee.

Sun, 10/16/2011 - 18:58 | 1779586 disabledvet
disabledvet's picture

more like "puree" if that's the firepower you're talking about.

Sun, 10/16/2011 - 15:08 | 1779110 Stumpy
Stumpy's picture

I prefer to return to my own village, where solidarity still exists. And also where zombies won't bother going because it's too damn far. I feel sorry for those stocking on guns and actually feeling they will use them on people. Then again, maybe I'm too Canadian.,-61.77063&spn=0.78002,1.966553&t=h&z=9&vpsrc=6

Sun, 10/16/2011 - 18:42 | 1779547 Paul E. Math
Paul E. Math's picture

I hope Bass knows how to share.  Because as much as guns and gold will be necessary for survival, so will community.

Sun, 10/16/2011 - 21:02 | 1779873 Theosebes Goodfellow
Theosebes Goodfellow's picture

Paul E, at his level of game, he doesn't have to. He simply buys his own. I'm not knocking him, it's just how guys at that level roll. If you were in his shoes, wouldn't you?

Sun, 10/16/2011 - 19:02 | 1779596 cossack55
cossack55's picture

When it gets to the point of kill or be killed, moral relativism is no longer even interesting.  How the fuck far do you think you (me, others) are from the caves. Civilization is an era, not an end.

Sun, 10/16/2011 - 18:26 | 1779512 Vlad Tepid
Vlad Tepid's picture

When things implode, life in Mexico will probably be more bearable than in most of the states...their system has already imploded and their more "primitve" economy is less likely to experience a shock.  They get to go from Third World status to....Third World status.  Plus they already have a functioning neo-feudal system of government in place in the form of cartels.  It will be more painful in the US as Americans adjust to a similar reality.  The real people who have to worry about zombie hordes from the south are the Canadians.

Mon, 10/17/2011 - 06:22 | 1780640 merizobeach
merizobeach's picture


Sun, 10/16/2011 - 19:47 | 1779688 Seer
Seer's picture

So, you expect to see a horde of malnourished, poorly clad Mexicans swarm?

History says that large masses of starving people tend to struggle along and drop like flies as they travel.

I'm more fearful of all the nutjobs armed with those cannons who will come after my food once their c-rations (and techo-crap) give out.  These are the folks that'll be recuriting others.  They're the ones that are programmed to see everyone but their ilk as "the problem."

The other shit makes for a great story though...

Sun, 10/16/2011 - 14:46 | 1779057 RafterManFMJ
RafterManFMJ's picture



No, he is not related to them (the Bass' of Ft. Worth.)

Sun, 10/16/2011 - 15:48 | 1779219 LordofTruth
LordofTruth's picture

Not part of Bass Family. He is self-made. See below article.

Sun, 10/16/2011 - 18:55 | 1779573 disabledvet
disabledvet's picture

Is that the railroad town of Ft. Worth?

Sun, 10/16/2011 - 19:04 | 1779599 cossack55
cossack55's picture

NO, the RR town of Ft. Worth had value. 

Sun, 10/16/2011 - 17:15 | 1779385 LawsofPhysics
LawsofPhysics's picture

He is a good old boy.  Just like many of the Texas elites from the area, he went to Country Day prep school, Stanford, then Harvard.

He makes NO mention of THREE unfunded wars, dead giveaway.  Sure Kyle, kill medicare and keep these wars going.  What a fucking tool.

Sun, 10/16/2011 - 19:07 | 1779607 cossack55
cossack55's picture

So does that make him a Dem, a Repub or just someone who does not particularly give a shit about DC and the moneymasters.  Could he possibly be just a (gasp) individualist who figures each person is maybe responsible for thier own situation?

Sun, 10/16/2011 - 20:31 | 1779785 Restcase
Restcase's picture

Actually, he explicitly singles out defense industry growth as the same evil as government growth when he says the only private sector growth in 10 years has been in healthcare, defense and education - surrogates for USG.

Sun, 10/16/2011 - 15:42 | 1779205 slaughterer
slaughterer's picture

Kyle for President!

Sun, 10/16/2011 - 18:26 | 1779508 slaughterer
slaughterer's picture

Kyle Bass is as brilliant as Dr. Michael Burry, with a different sense of humor and personality, no doubt.  About time Lewis covered him... unfortunately, I do not think that Lewis took Bass seriously enough.  When will Lewis be able to take that next step into the nightmare world of Keynesian melt-down?  

Sun, 10/16/2011 - 22:37 | 1780158 ToNYC
ToNYC's picture


Hmmm! Guns for a regiment but an army of one that needs to sleep after 72 hours playing general with no troops. Go gold. Find it in a hole. Dig it up. Guard it. Bury it. Repeat. When confidence in any decent solution, no cares.

Sun, 10/16/2011 - 13:31 | 1778942 SGS
SGS's picture

I love beaver.

Sun, 10/16/2011 - 13:49 | 1778965 pain_and_soros
pain_and_soros's picture

The beaver is Canada's national rodent - and just so happens to be prominently featured on its nickel coin.

Take that to the bank!


Sun, 10/16/2011 - 14:46 | 1778993 akak
akak's picture

Indeed, in what can a country take pride, if not their national rodent?  Or the leaf of an everyday tree?  Or the foreign figurehead monarch of a dissipated former empire?  Or a children's game played on ice?  Or rigid political correctness run amock (Natives = "Aboriginal First Nations Peoples", lol!).  Yes, the northern heart must swell near to bursting at such weighty symbols of national pride!

(I wonder if Blythe Master's beaver will someday be commemorated on a silver coin?  Hopefully not a colorized one ---- yuck!)

Sun, 10/16/2011 - 15:05 | 1779101 knukles
knukles's picture

Hey!  We take pride in our national rodents
We put their pictures on our currency and coins.

Sun, 10/16/2011 - 15:10 | 1779113 akak
akak's picture

I think you are confusing the parasitic helminthis with the rodentia.

Sun, 10/16/2011 - 15:29 | 1779174 knukles
knukles's picture

Ah, my confusion.  Only thing I remember is that they all turn into unspeakable things with sharp claws, red eyes that glow in the dark, looking up at you out of the steaming firey hot abyss, the monkey deamons, with the bleeding string warts and feaces smell on nights when its way too quiet and they come looking for additional revenues promising untold bright futures...

Sun, 10/16/2011 - 21:21 | 1779939 RockyRacoon
RockyRacoon's picture

Hey, watch it guys.  I'm in the room.

Mon, 10/17/2011 - 06:57 | 1780664 merizobeach
merizobeach's picture

Mm, all that yummy timber and fresh water, yum yum, and oil and whatever else, yum yum..

"the insatiable wasichu is coming, and you are all doomed" ~from a native american tale

not to mention all that someday-arable land and beaches under that defrosting permafrost... oops, methane!  "Regardless, where's XO to annex the whole place?" --this POTUS or a later one.  12 minutes from now, all MSM: "President Bankstershill has agreed to deploy American army troops to assist local Canadian authorities in managing the growing pressures posed by members of the Occupy movement.  American soldiers are presently making land crossings into Canada at a variety of locations."

Sun, 10/16/2011 - 22:05 | 1780069 TheFourthStooge-ing
TheFourthStooge-ing's picture

That kind of sounds like the Woodland Christmas Critters.


Sun, 10/16/2011 - 17:12 | 1779378 flattrader
flattrader's picture

We have always been at war with Rodentia.

Sun, 10/16/2011 - 17:33 | 1779416 akak
akak's picture

My first outright laugh of the day here!

Sun, 10/16/2011 - 15:28 | 1779173 Pladizow
Pladizow's picture

US cyurrency is littered with the faces of rodents past!

Sun, 10/16/2011 - 15:18 | 1779133 TheFourthStooge-ing
TheFourthStooge-ing's picture

...or Sunnyvale Trailer Park.


Sun, 10/16/2011 - 15:23 | 1779153 unerman
unerman's picture

Dammit. Being Canadian, I was going to come ups with a nasty retort, but you got u got me the natives comment.

Sun, 10/16/2011 - 14:13 | 1779000 traderjoe
traderjoe's picture

Make great hats.

Sun, 10/16/2011 - 14:35 | 1779044 Stumpy
Stumpy's picture

Quite tasty too.

Sun, 10/16/2011 - 15:00 | 1779086 Pure Evil
Pure Evil's picture

And the tails make great paddles for spanking your honey bunny on Saturday nights.

Sun, 10/16/2011 - 15:13 | 1779122 Stumpy
Stumpy's picture

You may be interested in muskrat tails then. A couple of them together and you have a perfect whip.

Sun, 10/16/2011 - 15:41 | 1779202 Pure Evil
Pure Evil's picture

Nothin like a good erotic spanking to get that cold hearted bitch hot and ready for action.

Erotic spanking

for the love of spanking

Yes, spanking can be sexy, and a majority of women have fantasies about being spanked. Most men, too, find spanking a woman to be a strong sexual turn-on.

The art of erotic spanking

Sun, 10/16/2011 - 13:33 | 1778943 knight99
knight99's picture

Gold baby Gold

Sun, 10/16/2011 - 14:03 | 1778983 Vergeltung
Vergeltung's picture

don't forget the guns part.


Sun, 10/16/2011 - 14:13 | 1778999 bania
bania's picture

that's my line

Sun, 10/16/2011 - 13:35 | 1778946 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

As long as they're not Stanley Nickels!

Sun, 10/16/2011 - 13:35 | 1778947 Rainman
Rainman's picture

WSJ took a nice romp around California it chases more jobs out of the State.


Sun, 10/16/2011 - 14:18 | 1779011 RSloane
RSloane's picture

The jobs bleeding out of California are being chased by quite a few demons.

Sun, 10/16/2011 - 15:06 | 1779100 Pure Evil
Pure Evil's picture

California don't need no stinkin' jobs, they can print up all the IOU's they need to pay off the ignorant populace. Between that and Marihoochie up north and meth labs in the central valley you can't really ask for more than that.

Sun, 10/16/2011 - 15:22 | 1779147 TheFourthStooge-ing
TheFourthStooge-ing's picture

Marihoochie up north and meth labs in the central valley you can't really ask for more than that.

I believe they refer to that as their 100 percent tax abatement plan for rebuilding their agricultural and manufacturing base.


Sun, 10/16/2011 - 13:46 | 1778948 Smithovsky
Smithovsky's picture

“The Fed apparently called my guy at the bank,” he says. “They asked him, ‘Why do you want all these nickels?’ So he called me and asked, ‘Why do you want all these nickels?’ And I said, ‘I just like nickels.’”


The take home: Atonement is coming, bitchez. Beavers beware.

Caveat castor!


Sun, 10/16/2011 - 13:39 | 1778952 Joebloinvestor
Joebloinvestor's picture

The Vanity Fair article on Greece was a real eye opener and a confirmation on why Greece will never get "fixed".

Sun, 10/16/2011 - 17:23 | 1779399 buyingsterling
buyingsterling's picture

A great article. A few key highlights:

- Greeks have 4x as many teachers per pupil as top-performing Finland. And Greece's educational system stinks.

- The average public sector worker gets 3X the wage of private sector workers.

- Many of the austerity measures being protested against were recent promises, easy credit turned Greece's govt. into a 'pinata'.

The kicker, for me:

'The retirement age for Greek jobs classified as “arduous” is as early as 55 for men and 50 for women. As this is also the moment when the state begins to shovel out generous pensions, more than 600 Greek professions somehow managed to get themselves classified as arduous: hairdressers, radio announcers, waiters, musicians, and on and on and on.'


Sun, 10/16/2011 - 19:02 | 1779597 disabledvet
disabledvet's picture


Sun, 10/16/2011 - 13:39 | 1778953 PonziBeaver
PonziBeaver's picture

Dam you Kyle Bass!!!!!

Bass are tasty.

Sun, 10/16/2011 - 14:19 | 1779015 RSloane
RSloane's picture

PonziBeaver. I love it~!

Sun, 10/16/2011 - 13:40 | 1778955 americanspirit
americanspirit's picture

Here's one for you Kyle. Buy lots of copper ingots. Build a shitload of rental houses. Build all the non-bearing walls in rental houses with the copper ingots, using them just like bricks. Build at least one solar heat sink wall out of ingots and take a tax credit for it. Rent the houses to people you trust, and make them partners in your deal. Depreciate the rental houses to zero. Tear out the copper and sell it - basis zero, already depreciated. Give renters their share. Renovate the non-load bearing walls and the solar heat sink wall in your rental houses with copper ingots. Rinse and repeat.

If you can figure out how to do the same thing with all those nickles, go for it. I'll be happy to send you my bank routing number for that commission check.

Sun, 10/16/2011 - 14:05 | 1778987 Stumpy
Stumpy's picture

So here I am, asking a stupid question on such a good comment. I'm not familiar with rental houses, or real estate in general. What does "depreciate the rental houses to zero" mean exactly?

Sun, 10/16/2011 - 14:12 | 1778996 akak
akak's picture

What does "depreciate the rental houses to zero" mean exactly?

I hope it doesn't mean Detroit.

Sun, 10/16/2011 - 14:19 | 1779012 Stumpy
Stumpy's picture

Now that I would have understood pretty well.

Sun, 10/16/2011 - 14:23 | 1779022 traderjoe
traderjoe's picture

It's pretty complicated so I'd recommend a Google search. but essentially the tax law allows you to mark down the tax value every year of an asset based upon some tax table that is supposed to approximate the useful life of said asset. Those mark downs are tax deductible.

Sun, 10/16/2011 - 14:27 | 1779030 Stumpy
Stumpy's picture

Got it. Magic.

Sun, 10/16/2011 - 17:17 | 1779388 flattrader
flattrader's picture only reduces your tax basis in the property to zero if fully depreciated.

When you sell the property or parts, you then have to pay tax on the gain as ordinary income.

Sun, 10/16/2011 - 13:42 | 1778957 nick elsworth
nick elsworth's picture

Smart man :)

Sun, 10/16/2011 - 13:47 | 1778959 blindman
blindman's picture
Amy Winehouse - Rehab
ps. the beaver was the species that insured the
ecological distribution of liquidity that sustained
the fertility of the land.
bass may be destroying his water supply by executiong
his beavers. funny how these things work out.

Sun, 10/16/2011 - 14:53 | 1779074 Oh regional Indian
Oh regional Indian's picture

Thanks Blindman. i was thinking the same thing.

 He sounds like a cruel, tactless, classless/clueless man who got rich off his family connections. Wunderkid indeed.

See something. America always makes the wrong people heroes. Haven't you guys, all the breathless commentators above got that that yet?

Cackling excitedly like a bunch of geese because a rich connected PTPB sonny boy said guns, gold and nickles.




Sun, 10/16/2011 - 15:50 | 1779225 blindman
blindman's picture

in america anyone who uses the word community
or ecology is fast labeled a marxist/communist
stalinist. the msm believes in personal slavery
( called freedom ) in service of corporate will
and tyranny ( called individualism ). as you point out
the heroes are then insane farces who mimic some
vision of the third reich on a smaller scale. running
around looking for things to kill and blow up. i think
it usually ends in some sort of suicide drama in a barren
and lifeless place.
this guy bass is armed for a war, i wonder if he has
the soldiers lined up? also, i wonder how he survived the
recent fires and droughts in texas?

Sun, 10/16/2011 - 17:11 | 1779376 buyingsterling
buyingsterling's picture

"in america anyone who uses the word community
or ecology is fast labeled a marxist/communist

Community, not so much. There's growing interest in localism, across the specrtrum. Ecology - yes, because it's totalitarian by nature. Everything is an externality, so a small clique of front men for the banking cartel have to write the rules for every nation stupid enough to follow along. See: Rothschild's global warming tax enslavement scam.

Sun, 10/16/2011 - 18:42 | 1779548 blindman
blindman's picture

if eco-logy is totalitarian by nature then why
isn't eco-nomy totalitarian by nature, or is it also?
one is the study or love of, the other the "naming" of.
Back-formation from -eco (“quality”).
[edit] Pronunciation
IPA: /?etso/
Hyphenation: e?co
{edit] Noun
eco (plural ecoj, accusative singular econ, accusative plural ecojn)
1.quality, attribute
[edit] See also
[edit] Italian
[edit] Noun
eco m (plural echi)
2.echoing sound
[edit] Noun
eco f inv
1.(Short form of: ecografia, medicine) ultrasound, ultrasonography
enPR: -l?j?, IPA: /-l??i/, SAMPA: /-l@dZi/
[edit] Suffix
1.A branch of learning; a study of a particular subject. Examples: biology, geology, genealogy
From Ancient Greek ????? (nomos, “law, custom”).
[edit] Suffix
-nomy (or -onomy when including the connecting vowel -o- that is commonly used in connecting two elements of Greek origin)
1.a system of rules, laws, or knowledge about a body of a particular field; distribution, arrangement, management
check this out .. -nomics. it is just a game where players take turns
changing the rules!
From the suffix -nomic; see -nomy.
[edit] Proper noun
1.A game, intended to model certain aspects of legal systems, in which players take turns by modifying the game's rules.
oh brother !

Sun, 10/16/2011 - 19:30 | 1779652 buyingsterling
buyingsterling's picture

A game, alright. Good thing everything works out as the dictionary dictates, so we can avoid semantic discussions.

Sun, 10/16/2011 - 14:58 | 1779083 High Plains Drifter
High Plains Drifter's picture

if it was me, i would not kill any of my wild life......deer maybe if hungry but that is about it.......

Sun, 10/16/2011 - 15:29 | 1779176 Hulk
Hulk's picture

That part bothered me too. On our property, we are thinking about bringing in some Beaver so that they can make legal dams on our creeks, thus creating the ponds that we need...

Sun, 10/16/2011 - 23:08 | 1780219 blindman
blindman's picture

in the ecology, beaver, liquidity, fertility
analogy the beaver ( being executed ) is
the middle class. ?

Sun, 10/16/2011 - 13:49 | 1778963 Stonecold
Stonecold's picture

Why is he so paranoid? 

Sun, 10/16/2011 - 14:19 | 1779014 DosZap
DosZap's picture


Must be because we just paid off the National Debt.............................

Sun, 10/16/2011 - 14:59 | 1779085 High Plains Drifter
High Plains Drifter's picture

when a billionaire tells you something smells fishy you had better pay attention because he may live in dallas but the fact is that when you are in that high climate, you bend the ear and listen to many shall we say "interesting "  people who know many things , that perhaps we do not.......

Sun, 10/16/2011 - 13:54 | 1778971 bogey4
bogey4's picture

It's Salomon, like the brokerage house, not the biblical king.  Am I dating myself by remembering that?

Sun, 10/16/2011 - 13:54 | 1778972 PD Quig
PD Quig's picture

As they say, "Just because you're paranoid doesn't mean that everybody isn't out to get you."

Sun, 10/16/2011 - 13:56 | 1778974 Spastica Rex
Spastica Rex's picture

Kyle? Oh, at first I thought it said "Lance." Never mind.

Sun, 10/16/2011 - 14:01 | 1778976 Robslob
Robslob's picture

Healthy at completely unprepared would be worst case.

Sun, 10/16/2011 - 14:01 | 1778978 SheepDog-One
SheepDog-One's picture

Its coming, those who talk about 'face melting rallies' and all that will again have to rear-view mirror adjust their results one morning soon.

Funny how that works, isnt it? the 'bulls' are all out stomping their feet after last 2 weeks rally, but I didnt hear a word from them when the DOW just fell from 12,700. 

Stock up on Windex and paper towels folks for those rearview mirrors mounted on those monitors.

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