Kyle Bass: America is at risk of turning Japanese
Hedge fund boss Kyle Bass thinks that the US is heading for recession, with even the gloomiest projections wrong.
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America is at risk of turning Japanese, says hedge-fund manager Kyle Bass. The US central bank, the Federal Reserve, is expected to cut interest rates later this month, in hope of boosting inflation. Markets already expect a significant reduction in rates over the longer term, but Bass tells the Financial Times that he thinks even the gloomiest projections are wrong.
Bass has a record of being bearish he spent many years warning that Japan's vast public debt would cause a collapse in the value of the Japanese yen. More recently, he gave up betting on a big drop in the Chinese yuan, having entered a short position in mid-2015 in the belief that the Chinese government would burn through its foreign-currency reserves and fail in its efforts to prop the yuan up. As Bloomberg notes, the yuan fell by about 10% over that time, but Bass had been calling for a drop of closer to 30%.
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