As far as the founder of Hayman Capital Kyle Bass is concerned, the monetary and political union of Europe has not got long left.
Moreover, Bass thinks that it is very hard to make good investments due to the major debt accumulation all over the world. When it comes to Europe, Bass himself comments that the European Union is just perceived to be staying together and concentrates on the 90 per cent bond value which investors lost in Greek debt. He has quite a pessimistic view on the future of the continent – he is of the opinion that a collapse is going to take place in Europe because of the logjam caused by mistrust.
Furthermore, Bass is of the opinion that the confidence which investors invest in the federal government is somewhat unwarranted. He comments that neither party in the USA will succeed in solving the problems concerning the budget of the country.
Since he seeks such volatility coming in the future, Kyle looks for safe investments guarded from the global debt crisis or the European problems. To put it simply, Kyle Bass relies on Mortgage Backed Securities despite his shorting the assets in the past. Moreover, he does not think that the housing market will give any returns in the near future.
Kyle deems gold safe just because he thinks that it forms a secondary currency. He is of the opinion that creeping up the future caused inflation. He commented that the Federal Reserve’sprinting money has only made up for major losses which has manifested in losses in money supply during the crisis.
To cut a long story short, Kyle Bass does not have an optimistic view on future. In fact, it is one of the most pessimistic ones among investors. He is convinced that Europe will collapse, the USA will not solve its debt crisis, inflation will soon hit, and debt problems will continue to spread all around the world.