Tuesday, December 13, 2011

Hayman Capital Management | Kyle Bass | Excellent Discussion inc. Europe and China (BNN)

Selected Excerpts:
  • Japan will follow Europe in debt restructuring
  • Europe's banks (with 3X the leverage the US had) have to be recapitalized
  • Global Assets $87T >>> $40T reside in Europe - in a post recap world - debt:GDP will be unmanageable
  • Fringe EU banks - annualized rate of capital flight >20% - this is the final precursor to a sovereign default - this is happening as we speak
  • Central bank thesis - default or inflation - at insolvency of many multiples - are not mutually exclusive - the inflation will create the default
  • China banking sector assets have grown by 50% of GDP two years in a row - analogous to $14T into US economy in two years - is another $5T possible for China?  Sure.
  • Its a disaster in the US, it's a scary place
  • Canada: a central banker whom I recently met, and like

View Full Video HERE

No comments: