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Kyle Bass Warns “All Hell Is About To Break Loose” In China

  • Kyle Bass Warns “All Hell Is About To Break Loose” In China
    by Tyler Durden, http://www.zerohedge.com
    China’s credit system expanded “too recklessly and too quickly,” and “it’s beginning to unravel,” warns Hayman Capital’s Kyle Bass.

    Crucially, Bass notes that ballooning assets in Chinese wealth management products are another sign of a looming credit crisis in the nation.

    “Some of the longer-term assets aren’t doing very well,”
    Bass said on Bloomberg TV from the annual Milken Institute Global Conference in Beverly Hills, California. “As soon as liabilities have problems – meaning the depositors decide to not roll their holdings – all hell breaks loose.”

    The wealth management products, or WMPs, have swelled to $4 trillion in assets in the last few years, he said., on a $34 trillion banking system…

    “think about this – in the US, our asset-liability mismatch at the peak of our subprime greatness was around 2%! … China’s mismatch is more than 10% of the system.”

    read more.

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May 5, 2017 - Posted by | Economics | , , , ,

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