Posted on 12/14/2011 10:48:51 AM PST by blam
KYLE BASS: Last Week's EU Summit Agreement Was A 'Doomsday Machine'
Mamta Badkar
Dec. 14, 2011, 12:23 PM
In a new interview with CNBC, Kyle Bass, managing partner at Hayman Capital Management, said that Europe is moving closer to restructuring as even "the citizens of those most troubled and profligate nations are losing confidence in the Euro dream".
Comparing the European Monetary Union to his extended family, Bass said he was unlikely to sign a joint and several liability agreement with family members, and that was the problem in Europe. He said he expects the monetary bloc to break-up. In the interview, Bass gave us his bearish outlook on Europe:
"If you get out a blank piece of paper and have a look at it, that's the plan they're working from right now. Everything is an agreement in principle. There are no details. It's very difficult to arrange such a disparate group of people, and get them all to cede their fiscal sovereignty to call it a central taxing authority, and in the absence of that, it won't work.
…I think that if you look at this last agreement, from the last summit, it's somewhat of a doomsday machine. What they're talking about, are the ECB and governments guaranteeing the debts of the banks which in turn buy the debts of their country that's making that guarantee, pledging it at that central bank and getting more money to go buy more debt of those countries.
It's somewhat sophomoric if you ask me. It is a circular reference that i don't think institutional investors around the world are going to buy, they might hoodwink some retail investors into buying these things.
(snip)
...there are no buyers of peripheral bonds."
(Excerpt) Read more at businessinsider.com ...
That's a new one!
My totally uneducated spidey-sense is telling me something BIG is going on behind the scenes.
U.S. Printing presses are smoking, printing money trying to keep the Big Euro Banks from failing, and NO ONE in the US Mainstream media even DARES to mention it.
(Like so many other things that might make a Democrat look bad.)
The liquidity crisis is morphing in to a SOLVENCY crisis. Note the BIG sell-off in metals? Some folks are selling hard assets to cover other losses, and likely margin calls.
Obama is having a heart Attack that this hits US right before the elections.
I agree. We don't know half the story. I simply do know that the Euro-statists in Brussels will not give up their empire building without a fight. I also believe that Central Banks around the world, particularly the US FED, are sympathetic to the while Euro project, and will print, print, print in coordinated way when they feel the time is right.
I’m confused.
Good lord listening to that man gives me hope, all his calls might not be right but at least he is not a magic thinker like a Kudlow.
” I’m confused. “
See?? It’s working...
Bass is from the legendary Bass clan from Texas. They know money. Kyle Bass went to the bankers in NYC before the bottom fell out on Wall St. in ‘08 and warned them that the markets were on the verge of imploding due to the fraud in derivatives.
He reported after the crash that their only response after his prescient presentation was, “We hope you are wrong.” He wasn’t.
Bass was good this morning - he just calmly laid out why the Euro is doomed and the Europhiles had better start facing reality.
While the presses are going full speed, that money isn't going anywhere besides the banks and sovereigns.
The Velocity of Money remains at historic lows, especially in Europe.
Defaults will continue and eventually engulf said sovereigns.
The "money supply" is drying up...slowly.
And we are not far behind.
“Bass is from the legendary Bass clan from Texas. “
No. He is not related.
But, he is from Texas and he is developing his own legend.
(snip)
In a recent article, I detailed how renowned Texas investor Kyle Bass appears to be very well prepared for the horrible economic collapse that he believes is coming. The following is how one reporter described his recent visit to the 40,000 square foot “fortress” owned by Bass….
“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.”
Do you think that Bass is taking things too far?
(snip)
I expected that curve to develop in Nov, not Dec.
Doomers are always wrong till they are not.
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