Kyle Bass on CNBC

[fareastwarriors]

http://video.cnbc.com/gallery/?video=3000119228&play=1

Enjoy.

[Poor Charlie]

What Kyle Bass does when he’s not shorting the world:          http://www.youtube.com/watch?v=0bNgR7NoFYs

 

I'll leave the macro (& the high speed racing) to Mr. Bass, He's much more capable at both than me.  Always fun to listen to though.

[meiroy]

"“We had a hyper-leveraged economy and world going into the financial crisis," Bass said. "We lost trillions and trillions of dollars because of that leverage. The first several trillion dollars that were printed just replaced what was lost” and had no net effect on global money supply."

 

Would appreciate it if someone could clarify this.  Does he refer to difference between M01 and M1? Thanks.

[JRH]

"“We had a hyper-leveraged economy and world going into the financial crisis," Bass said. "We lost trillions and trillions of dollars because of that leverage. The first several trillion dollars that were printed just replaced what was lost” and had no net effect on global money supply."

 

Would appreciate it if someone could clarify this.  Does he refer to difference between M01 and M1? Thanks.

 

Bass should write his own equivalent to Dalio's "How the Economic Machine Works".  In the context of other economic theories, he is always a little vague about the theory behind his macro calls (currency, inflation, etc...).

 

What I have to assume he is suggesting is that the central banks swapping debt instruments for reserve balances (some call this "money printing", which is problematic not because it's incorrect but because people disagree about what that term really means and they don't realize they are arguing over terminology more than theory) are offsetting the reduction in deposits that accompany private-sector de-leveraging.  You might call that a sort of modified-money-multiplier theory where you're just changing what "money" you're counting and you assume that overall monetary velocity is always going to be more or less the same.  In my opinion, that is an unsatisfactory simplification (not because I know better but because I think all attempts to predict monetary velocity outside of specific circumstances are a result of being in love with models).

[MrB]

What Kyle Bass does when he’s not shorting the world:          http://www.youtube.com/watch?v=0bNgR7NoFYs

 

I'll leave the macro (& the high speed racing) to Mr. Bass, He's much more capable at both than me.  Always fun to listen to though.

Probably no connection

http://www.bloomberg.com/news/2012-12-06/wes-swank-of-kyle-bass-s-hayman-capital-dies-at-31-in-car-crash.html