The Kyle Bass Component

When one is looking into financial markets, there are a lot of elements which need consideration. One of those elements is predators. Think of it like bottom feeders in the ocean. The smart ones are going to follow the swarming sharks and get a lucrative fallout after the frenzy. Well, in finances, bottom feeders and predators are going to go where the money’s relatively certain, and relatively easy. Kyle Bass is a financier notorious for just this kind of thing. In fact, when one examines his actual career, it doesn’t seem like there’s very much he’s done that hasn’t been profit at the expense of another party. His activity very much matches that of a bottom feeder, though he’s in a high profile “bottom”.

Consider Bass’ roots internationally. A man with Argentinian heritage, says that Bass became well known in 2008 when he predicted that sub-prime lending practices in American housing markets would eventually lead to an economic collapse with far-reaching implications. This prediction turned out to be one that was accurate, though many subsequent predictions Bass has made ended up missing the mark entirely. It doesn’t matter though, as having predicted a historical event, Bass is pretty much vetted perpetually. He certainly knows his position, and certainly uses it to effect stock market manipulations when he can.

One of the greatest examples of Bass’ market manipulations comes in the form of CAD, the Coalition for Affordable Drugs. While the organization is ostensibly humanitarian, the fallout of its practices are decidedly negative to the human race, meaning Bass’ impetus to start CAD probably has nothing to do with empathy, charity, or anything reasonably humane. In fact, it’s likely that Bass started CAD because his own hedge fund performs so poorly. Since his 2008 prediction, it’s continually under-performed other hedge funds of the same kind that already had mediocre reputations. CAD would seem to be an excellent way to rectify such damage and obtain positive PR to boot. When one looks deeper into CAD, though, the picture becomes sickening.

CAD forces big-ticket pharmaceutical organizations to decrease what they sell their medicine for. In the end, the stock value of those companies plummets, and Kyle Bass short sells his holdings with them. He gets away with millions while the companies have to cut funding to departments like Research and Development so their bottom line is preserved, and progressive discoveries are curtailed.

This is the Kyle Bass component: in any financial system will be manipulators like him who creep under the stock market feeding frenzy looking for scraps. Bass is dangerous not only because of his unethical practices, however; he’s also dangerous for his involvement with socialist president of Argentina Cristina Fernandez de Kirchner, who is likely informing his every move. When factoring in the Kyle Bass component, don’t forget his socialist attachments.