Friday, 12 October 2012
Kyle Bass: This fiscal cliff is not going to happen,they're going to vote it down the road another year - Oct3, 2012
Japan is about to follow Europe's deep debt crisis, Kyle Bass tells CNBC on September 15, 2012, a hedge fund manager and founder of Heyman Capital.Although investors are focused on the situation in Greece and other European countries, Japan will soon reminded himself stated Bass.
"Things in Greece will get out of control in the next 30 to 60 days," said the investor, who became known for his large short positions in subprime mortgage-backed securities before the collapse of the sector in 2007-2008.
"Japan is a market crossroad ... I've never seen a more understated option throughout their lives, "he says.
Bank of Japan effectively monetized the country's debt by buying Japanese government 50 trillion. yen, says Bass.
There are many dangers associated with strategies of central banks trying to print his escape from the debt crisis. These are inflation and loss of confidence in the stability of the debt, says Bass.
In his impending crisis is obvious. "The simple fact is that we are not talking about an exercise in quantitative easing. The question is when, not whether the system will collapse. "
Japan's aging population and the burden of system benefits, are the main factors giving rise to the debt problems.
Bass words as illustrated cites convicted of financial fraud Bernie Madoff fund manager. "He taught us anything," said Bass. "Can not promise anything, as long as you do not have to do them."
As for Europe, Bass rejects the idea that Greece can adhere to contractual agreements. "The bankruptcy will be controlled and eventually they will have to abandon his promises to the Troika," he said, referring to the European Union (EU), International Monetary Fund (IMF) and European Central Bank (ECB).