Cristina Fernandez de Kirchner is a socialist despot in Argentina. She runs the country. Or, rather, she abuses the country and says she runs it. The woman is terrible with money. She has defaulted Argentina two times in only thirteen years–that’s the kind of leadership so bad it’s going to be taught in high school classrooms indefinitely. And Cristina Fernandez de Kirchner holds the leash which extends to Kyle Bass as UsefulStooges was first to report, her financial pit-bull on Wall Street.
Kyle Bass has a long history of deliberately undermining successful financial institutions with backhanded tactics for the purpose of making money. He runs a hedge fund in Texas, and he also runs an organization called CAD, the Coalition for Affordable Drugs. CAD uses political pressure to push pharmaceuticals into lowering drug prices. This drops their stock value, and Kyle Bass short sells his holdings, skipping away with tidy sums as often as he can.
Before this, his big claim to fame came from predicting America’s sub-prime lending market would collapse. Here’s the thing: he may have been one of the initiating factors to begin that collapse. Make no mistake, the collapse would have happened with or without Bass–it happened because banks were trading mortgage-backed securities that had no real money behind them; only empty space. You can’t build a house of cards and expect it to stand forever. But Kyle Bass is like a dog on a leash running to that stack of cards and just tearing it up.
Bass did this in March of 2012 when he let slip information to a journalist regarding his previous employer, Bear-Stearns. The journalist then asked a chief executive of Bear-Stearns what his reaction to Goldman-Sachs’ reluctance to accept the “counterparty risk” of Bear-Stearns was. Of course, this was blown out of proportion. At the very time the CSPAN interview was taking place, Goldman-Sachs was sending an e-mail validating the transaction in question. But that didn’t matter, because the damage was done.
Was this done accidentally, or is it part of a bigger plan? Is it possible Cristina Fernandez de Kirchner has been training pit-bull Bass for just this sort of financial dog-fight? Outlandish as that may sound, it is a contention borne by evidence.