from Zero Hedge:
“The stress is beginning to show,” Kyle Bass warns during a wide-ranging interview with Bloomberg TV. “The beginning of the end,” is here for Japanese government bonds
as he notes that while quantitiavely it is clear they are insolvent,
“the qualitative perception of participants is changing.” But away from
Japan specifically, there is a lot more on the Texan’s mind. “Things go from perfectly stable to completely unstable,” very quickly;
even more so after 20 years of exponential debt build-up and Keynesian
cover-ups; and it is this that he warns complacent investors that it
is “really important to think about the capital at risk in your
strategy.” For this reason he prefers to hold gold rather than
Treasuries, as, “when you think about the largest central banks in
the world, they have all moved to unlimited printing ideology. Monetary
policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don’t have a great answer for you other than you should maintain a position.” His discussion varies from housing’s recovery to structured credit liquidity “money is being misallocated by the printing press”
and the future of the GSEs, concluding with the rather ominous, “at
some point in time, I would much rather would own gold than paper. I
just don’t know when that time is.”
Read More @ ZeroHedge.com
“The stress is beginning to show,” Kyle Bass warns during a wide-ranging interview with Bloomberg TV. “The beginning of the end,” is here for Japanese government bonds
as he notes that while quantitiavely it is clear they are insolvent,
“the qualitative perception of participants is changing.” But away from
Japan specifically, there is a lot more on the Texan’s mind. “Things go from perfectly stable to completely unstable,” very quickly;
even more so after 20 years of exponential debt build-up and Keynesian
cover-ups; and it is this that he warns complacent investors that it
is “really important to think about the capital at risk in your
strategy.” For this reason he prefers to hold gold rather than
Treasuries, as, “when you think about the largest central banks in
the world, they have all moved to unlimited printing ideology. Monetary
policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don’t have a great answer for you other than you should maintain a position.” His discussion varies from housing’s recovery to structured credit liquidity “money is being misallocated by the printing press”
and the future of the GSEs, concluding with the rather ominous, “at
some point in time, I would much rather would own gold than paper. I
just don’t know when that time is.”Read More @ ZeroHedge.com
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