Kyle Bass's fund down 46% since 2013. This is what happens when you're an idiot.

I've spoken about this idiot many times in the past. (And commented on his idiotic calls.)

This is what happens when you fundamentally don't understand how the  monetary system works.

The guy's fund is down 46% since 2013. Not surprising.

What surprises me is who gives this guy money to manage? BTW...the S&P is up 270% in the same period of time. And the average hedge fund way underperformed the market, not as bad as Bass, but well below the market's return.

They all suck.

Schiff probably the same.

Zero Hedge — Kyle Bass's Bet Against The Yuan Led To 19% Loss Last Year

Another flash in the pan.

Zero Hedge
Kyle Bass's Bet Against The Yuan Led To 19% Loss Last Year
Tyler Durden

Dumb AF hedge funds reeling. Tudor lays of 15% of staff amid losses and general cluelessness.

Paul Tudor Jones, the billionaire founder of Tudor investment Corp cut 15% of his staff amid losses and redemptions. You could see this coming a mile away.

The hedge fund industry is reeling because these guys are complete morons. They got everything wrong from predicting hyperinflation from monetary operations to debt crises that never materialised to warnings about skyrocketing interest rates to endless recession calls and market crashes, and promises of soaring gold prices and on and on.

All because they don’t understand sovereign money systems. All because endlessly conflated currency issues and currency users. All because they were too “serious” to pay attention to MMT.

Now they’re dying. Good. A total bunch of unjustifiably rich jerks.

Tudor Jones, Soros, Druckenmiller, Chanos, Kyle Bass, Schiff, Gundlach, Gross, Dalio, Ackman, Einhorn...I’m sure I am leaving out many, but those are some of the big names. Totally clueless. They don’t understand MMT and if by chance they've heard of it I am sure they scoffed at it. Losers.

Let ‘em laugh. I am talking their money.

This is the approach that allowed me to call everything right. My students and followers, many novices, running circles around these hedge fund clowns. In currencies, bonds, commodities, stocks, gold, economic forecasters.

The pretenders are exposed for the fools they are. Their money will be gone soon unless they buy some more politicians that will allow them to cheat and commit fraud and insider trading so that they can protect their fortunes.

In the meantime me and my team will be taking nice chunks of their money away. Honestly. Legally. Without cheating.

Knowledge is power and combined with the right information that's killer.

Dogma, ideology, arrogance, ignorance, stubbornness,  blindness...all applied to these idiots. Good bye to the whole lot of them. Ignorant parasites. They suck.

Kyle Bass is back with some more mind-numbingly dumb comments. This guy's too much.

Kyle Bass again. You know, Mr. Japanese debt crisis.

These media outlets keep parading this guy around never once asking him about his ridiculous predictions of a Japanese debt crisis, which never happened. Japan's rates are negative, the yen is near parity with the dollar. The entire yen's decline has been reversed and investors are literally paying the government of Japan to hold its paper.

Now he says he met with a very well known central banker. Said it was like an out of body experience. Bizarre characterization, but the guy is weird. He doesn’t Says the central banker told him something that would never be admitted in public: that quantitative easing only works if you're the only one doing it.

Now I don't who is stupider, Bass or the central banker.

Only works if you are the only one doing it? Work in what way? Well, we know that it doesn't work in the way central banks think it works, i.e. as "stimulus." It's an asset swap so it does not change the net financial position of the public. Well, actually, it does because ZIRP and NIRP remove income so it's like a tax and therefore deflationary. It hurts income and by corollary, the economy.

Secondly, if the central banker means that QE is intended to drive down the exchange value of the currency and if everyone else is doing it then your currency really doesn't see any downward adjustment, then he or she is wrong there, too. Since it acts to remove income it is deflationary and therefore supports currency exchange rates, it doesn't devalue them.

Fiscal expansion can adjust the currency's exchange rate lower, but not rate cuts or ZIRP or NIRP. Bass doesn't know this nor does the banker.

He goes on to talk about "Helicopter Money,"saying central banks have no choice. Yet central banks CAN"T do helicopter money. That is fiscal policy and we're already doing it. It's called deficit spending.

Finally, Bass's new prediction is a China crisis. He says that there will be a crash greater than 2008. Well, China didn't crash much in 2008 because it did a stimulus that was 15% of GDP. It rebounded so fast and so hard that they had to cut back.

Meanwhile, right now, China is deficit spending at the fastest rate in six years. That means no crash. that means Bass is still a total moron.

SALT Conference was and is a clown show

Last Friday concluded the annual SALT Conference out in Vegas. That's where a bunch of self-important, narcissistic hedge fund types sit around in the desert sun pontificating on the  markets, economy, etc. From what I read out of the discussions the whole thing was pretty pathetic

This conference has increasingly become the new American "Davos." It's not just financial types anymore. It has been attracting high level policy makers, celebrities, journo's, athletes and the like.

Caitlyn Jenner was there. Wow. Now THERE'S a "Strategic Alternative."

The shindig was founded and has been organized by pint-sized, Anthony Scaramucci, a 5'4" world-of-finance impressario who is one helluva schmoozer and community organizer, it appears.

What the conference brought to light was pretty much what we have known and have been reporting here for a long time: that pretty much no one in the world of finance--indeed, its very titans--have a fucking clue as to what the hell they are talking about.

Not only do they suck in terms of their understanding, their track records suck too.

Basically the only thing coming from that conference was a steady stream of incoherent logorrhea. Nothing but doom and gloom. Every crisis or impending crisis you can think of was thrown up there to support all the idiotic and out of touch views that these morons subscribe to.

The China debt crisis. The Japan debt crisis. The U.S. debt crisis. Central bank emasculation. Yada, yada, yada.

Holy shit.

They should have called it the "OOPS" Conference for "Out Of Paradigm Stupid."

As for their dismal performance Roslyn Chang, managing director of the China Investment Corporation (CIC), summed it up politely.

“I’m sort of disappointed with the performance, to say the least, of the industry,” she said. "Only less than 10% of managers are actually capable of adapting to the new reality. Probably 90% of the managers think they are part of the 10% anyway," she said.

Sort of disappointed? Ya think?

No shit, Roslyn. Your CIC has about $800 billion in assets and at this point I don;t know who is dumber: those clueless managers who continue to get everything wrong or your wealth fund that keeps $30 billion parked with these losers. CIC is literally buying their homes in the Hamptons.

Then of course you had Kyle Bass the Japan debt crisis idiot. He's moved on. Maybe it had something to do with negative interest rates (yeah, people are PAYING Japan to hold its paper) and a surging yen.

Now Bass is the new, Mr. China debt crisis. No mention of his disastrous call on Japan. He's still Scarmucci's boy, apparently. "Mooch" was so impressed by his "doubling down" on China that he wrote an article about him and posted it up on Linkedin the other day.

Hayman Capital’s Kyle Bass reiterated his bearish call on China’s yuan currency, saying conditions in the communist nation now feel like they did in the U.S. in early 2007 just before the financial crisis escalated. He says China’s official government data shan’t be trusted, but you can look at the country’s major trading partners in the region like Malaysia and Thailand to get a better picture of the true economic climate.

Cue the vomiting sound.

You had Schiff.

And you had this guy--Milton Berg of MB Advisors. He made headlines with his prediction we are on the cusp of a 30-year bear market” in stocks and bonds. Milton Berg? They guy oughta be called Milton Berle because he's clearly in the business of comedy.

Increasingly I believe that these guys are really selling sensationalism, nothing else. It's a giant scam.

Not a single heterodox point of view. Nothing. No reality. Just idiots running big money...blind.

And then there was former House Speaker, John Boehner. When asked what he was most proud of  he said, "that under his speakership the federal deficit fell as a percentage of GDP."

Wow, you get the picture.

Truly vapid. The whole, damn thing.

I don't know who Bob Bishop is, but if he's betting against Soros on China, he's sure to make a big score

Bob Bishop is a former Soros trader, it seems. Looks like he didn't take everything his boss taught him to heart, if at all. That's good.

Soros is totally confused about China. He believes China is facing a "debt crisis." This is the same, stupid thinking of morons like Kyle Bass.

I thought Soros was smarter. Apparently he made all his money by being lucky or getting inside information.

This Bob Bishop character is going to do just fine. And you should bet against Soros, too, when it comes to China.

Soros, maybe senile, but certainly misinformed, conflates China sovereign debt with U.S. mortgage debt

Soros says that China is in the same situation as the U.S. in 2007, 2008.

What’s happening in China "eerily resembles what happened during the financial crisis in the U.S. in 2007-08, which was similarly fueled by credit growth," Soros said. "Most of the money that banks are supplying is needed to keep bad debts and loss-making enterprises alive." Read more.

Except that China's debt is the debt of the government--in yuan--lent through banks, which are the fiscal "conduits" to the economy. China cannot run out of yuan.

On the other hand, American homeowners can run out of funds to pay their mortgages, which were bank credits (and booked as future bank profits/capital.)

Soros is clueless here. He has just joined the ranks of Kyle Bass, Peter Schiff and all the rest of the Bozo's.

It will be a pleasure to watch him lose some of that fortune.

Step up and get his money, kids.

I have yet to see a hedge fund operator who knows anything about economics or the monetary system

This should be no surprise. I have been documenting how clueless these guys are for a long time here on this blog.

Whether it's Kyle Bass or David Einhorn or Bill Ackman or John Paulson or even Bill Gross or any of them, they don't know what the fuck they are talking about.

They got everything wrong: monetary operations, inflation, the dollar, interest rates, commodities, "stimulus," etc.

On the other hand, I (we) got everything right because of our understanding of flows and MMT.

(Which begs the question: why am I not managing $15 billion? Go ahead and ask, it's a good question. Probably because I suck at marketing myself.)

Anyway, you can do better than them. Start by signing up for a 30-day free trial to my weekly report, MMT Trader. Take the money from these loser hedgies.

Valeant...another disaster for Bill Ackman. What's with this guy? What's with all these guys?

Valeant shares are getting pummeled today. Hedge fund guy, Bill Ackman, was long a boatload. He's getting creamed.

That comes after his disaster with shorting Herbalife. That was a disaster even despite teh fact that he tried to get the government to intervene on his behalf and start an investigation into the company. (Sleaze.)

Then we find out he recently shorted the Chinese yuan because he thought there was going to be a "debt crisis" in China. Like, China would run out of yuan. The other idiot that did that was Kyle Bass, who keeps losing money in one fictitious debt crisis after another. (Remember the Japan debt crisis he predicted?)

What's wrong with these guys? Ackman, Bass, Einhorn, Gross...they all suck. They all do the same, wrong thing. They're all fucking clueless.

I should be managing billions. Maybe I suck at marketing. Yeah, I do.

Yuan hits highest level against the dollar since December. Kyle Bass nowhere to be seen. Was China "Trumped?"

Remember Kyle Bass's new Big Short? Shorting the Chinese yuan? Yes, that's after that Japanese debt crisis thing of his didn't work out.

 Bass shorted the Chinese yuan and bragged about it. He based it on that same wrong thinking that led him to declare that Japan would have a "debt crisis."

 The yuan is now at the highest level against the dollar in three months.

 By the way, this may have been indirectly due to Trump and how he is increasingly being viewed as a realistic presidential prospect. And as Matt Franko pointed out, even if he's not elected, his trade policies are gaining traction with Democrats, too.

 China may be acting preemptively here in boosting the yuan and trying to avoid Trump's ire or, bringing policies down on that that would result in severe hikes in tariffs.

Kyle Bass blows another one

Kyle Bass blew another one it looks like. He and a bunch of other dumb-as-fuck hedge fund managers were thinking that their "big trade" was shorting the Chinese yuan.

Bass was looking for a new, "debt crisis" after the Japanese one he had been talking about never panned out. Actually, the Japanese government doesn't even have to pay investors interest anymore for holding its paper. Instead, investors are the ones paying. (Negative rates.) And in case you didn't notice the yen is surging.

So these morons led by Bass have been shorting the yuan, but today the yuan had the biggest rally since 2005.

Hey, this is what you get for not understanding sovereign money.

Oh well. Guess they have to look for a new crisis to blow money on.

Juliet Chung and Carolyn Cui — Hedge Funds Versus Nascent (Communist) Superpower

Some of the biggest names in the hedge-fund industry are piling up bets against China’s currency, setting up a showdown between Wall Street and the leaders of the world’s second-largest economy.

Kyle Bass’s Hayman Capital Management has sold off the bulk of its investments in stocks, commodities and bonds so it can focus on shorting Asian currencies, including the yuan and the Hong Kong dollar.

It is the biggest concentrated wager that the Dallas-based firm has made since its profitable bet years ago against the U.S. housing market. About 85% of Hayman Capital’s portfolio is now invested in trades that are expected to pay off if the yuan and Hong Kong dollar depreciate over the next three years—a bet with billions of dollars on the line, including borrowed money.… 

Across the Curve
Hedge Funds Versus Nascent (Communist) Superpower
Via the WSJ:
By Juliet Chung and Carolyn Cui

Where's Schiff? Where's Kyle Bass? Glenn Beck? All the rest of the gold bugs?

Suddenly the gold bugs are silent. The dollar bears, too. Remember, they all told us that massive central bank "money printing" was going to cause gold to go to $5,000 even $10,000 and ounce. That there would be inflation...even hyperinflation?

So what happened? Gold looks like death. Piece of shit.

And the dollar? Oh yeah, multi-year highs against just about every currency.

There is one thing that does concern me, however, and that is, when you start seeing pictures and commentary like this one (gold, death, etc) it might be time for a bounce. But other than a bounce, gold is crap.

Another loser: John Taylor's FX Concepts now pretty much dead as he preached gold, "bought" hyperinflation and followed all the loser Austrian/Schiff views

Kyle Bass, Bill Gross, John Paulson all the other idiots trapped in a totally misinformed view of the monetary system and now you can add to that, John Taylor of FX Concepts, whose once $14 billion fund is down to practically nothing.

And that should be no surprise.

Listen to Taylor on CNBC telling everybody over a year ago to invest in gold because "they're gonna start pumping" and he uses all of the same, incredibly dumb arguments of morons like Peter Schiff, Nassim Taleb, etc.

(Of course, CNBC constantly puts these guys all over their air and that's why CNBC's ratings suck and are plummeting. Hello, CNBC????)

These guys--all MMT detractors--are losing their ass in the current environment. They're so, so, wrong. I, for one, am elated to see them stripped of their money.

Another loser for Kyle Bass as J.C. Penney hits a 13-year low!

Loser after loser for Kyle Bass, the man who "predicted" the debt implosion in Japan, which never happened.

After that he went heavily long JC Penney stock (trying deseraately to recover from his ill-conceived short JGBs???) in early September.

Well, JC Penney stock just hit a 13-year low.

Who gives this fool their money to manage?

The "Japan is going to have a debt crisis" man, Kyle Bass, now taking a position in JC Penney

Bill Ackman is out, after his disastrous foray into JC Penney (and before that, Herbalife) where he took major losses and contributed nothing of value or fresh perspective to the embattled retailer.

So now a new group of clueless hedge fund morons comes in, this time headed by none other than "Japan is going to experience a debt collapse," Kyle Bass. Bass has been putting on quite the dummy show in the past ten months telling everyone who would listen (mostly CNBC) that Japan won't be able to find enough "external funding" to pay its debts (which are in yen and which, last time I checked, are created solely by the Japanese government).

I guess Bass has now decided to focus his Einstein-like intellect on the retail sector and, seriously, that ought to be fun to watch.

I'm wondering if Bass might decide to take some cues from a fellow "genius" hedge funder, Eddie Lampert, you know, the Libertarian, Ayn Rand espousing, CEO of Sears Holdings (Sears, K-Mart), the American retailing icon that he has been phenomenally successful in destroying?

Line 'em up, folks. Whether we're talking about Bass or Lampert or Ackman or Paulson or Cohen or even Jamie Dimon and Goldman, this is what American capitalism has devolved into. A bunch of privileged, whiny, egotistical, arrogant, sociopathic jerks playing casino games with vast amounts of chips who leave a path of destruction in their wake everyhwhere they go that the rest of America has to swim through.

Ira Sohn conference is underway: last year's big idea...buy gold

Well, the annual get together of that elite cadre of egotistical, clueless, financial bozos is underway again. No, I'm not talking about a JP Morgan board meeting, but rather, the Ira Sohn investment conference.

Last year's big idea? Buy gold. That worked out well, didn't it?

I wrote about it, here.

John Paulson, Kyle Bass, two "genius" fund managers who are long gold, short Treasuries. LOL!!!

The markets are proving once again that most hedge fund managers are more lucky (or fraudulent) than smart and that's if they made any money at all.

John Paulson's greatest trade (shorting the subprime market) was an exercise in fraud with the help of Goldman Sachs.

Since that rigged trade, Paulson's "genius" bet was to load up on gold and short the Treasury market because he believed that Fed "money printing" was going to create hyperinflation. (Obviously taking his cues from that moron Peter Schiff now.)

And Kyle Bass has been telling us for three years running how the Japanese bond market is going to implode. He keeps betting against the Japanese bond market and, not surprisingly, he loves gold.

And let us not forget some of the other prominent morons like Jim Rogers, Nassim Taleb and of course the biggest loser of them all, Peter Schiff.

These guys are useless, like most of the entire hedge fund community, but we told you that here at MNE a long time ago.

Kyle Bass: "Japanese Retirees Will Lose Up To Half Of Their Life Savings"

Video rant. Paging Mike Norman.

Zero Hedge
Kyle Bass: "Japanese Retirees Will Lose Up To Half Of Their Life Savings"
Submitted by Tyler Durden

Kyle Bass and the Debt Doomsday crowd, wrong yet again!!!