Hedge fund superstar Kyle Bass, the founder and principle of Hayman Capital Management, has certainly been doing his homework on some of the most pressing issues facing the global economy, according to BusinessInsider. Bass, who describes himself as a "realist," has a pretty negative outlook on the eurozone and Japan and the possible implications here in the U.S.
How long of a road do we have… "I think we have... let's say the political elite think we have 10 years -- I think we have 3-5 and it's predicated on the acceleration on what happens in Europe and Japan," Bass said. "I hope that's right."
The silver lining..."The silver lining, in my theory, our politicians, our people in the Fed and the Treasury, they all have front row seats to what's about to happen in Europe and Japan. It takes a crisis of that kind of magnitude to shake us to our core to change the path that we are on. Politically, the path isn't going to be changed."
Unabated free trade is problematic for the U.S….."I think unabated free trade is problematic for the country that the highest living standards and wages in the world," Bass said. "Call me crazy.You think you can import the good and leave the bad behind -- their standards and wages -- that's not the case." That's because in the U.S., he explained, we are starting to see permanent job loss…
If there is any growth in the U.S., it will be very slow…."We're not going to grow," he said. "If we grow, we are going to grow very slowly." Since Europe is in a prolonged state of deleveraging, he explained, the U.S.'s hope is to grow at 1 to 1.5%. "It's my assertion is our only hope is to plod along..."
Want more insights? Go to http://www.businessinsider.com/americatalyst-kyle-bass-2011-12
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