Kyle Bass Scams The Market, Seemingly

Imagine driving down a street, and accidentally hitting a pedestrian. Now imagine that pedestrian is part of a scam, and they leaped in front of the car because it looked as though the driver would have enough money to pay them in order to avoid police interdiction. That’s the kind of scam Kyle Bass has pulled at the national level, for millions of dollars, by deliberately–and legally–manipulating the stock market.

Bass gets away with it like this: he shrouds his manipulation in a political human-interest group that he himself created called CAD. CAD stands for the Coalition for Affordable Drugs. Its ostensible aim is to get drugs into a price-bracket that doesn’t break the bank of the dying. While it has been successful in achieving this short-run goal a number of times, in the long run it shortchanges not just the immediately sick, but future sufferers. When CAD forces a pharmaceutical group to drop their drug prices, it cuts their stock value. Bass then short sells the investment he’s made with the company in question and makes millions. Basically he chooses a lame duck and bets against him in the ring.

Bass’ actions in this regard shouldn’t be too surprising, though. Yes, he’s a hedge fund manager based out of Texas with Hayman Capital. But that is likely a deliberate front. Bass works hand-in-glove with Cristina Fernandez de Kirchner, a socialist leader of Argentina who is so bad at her job she has caused economic default to backhand the country two separate times in just thirteen years. How could Bass economically approve of her, unless his ideals were ideologically similar?

With these things in mind, when Bass said at the Milken Institute Global Conference that investing in China was a bad move because “common sense” dictated a collapse in the near future, many began to speculate as to his particular angle in disseminating such information. Is Bass trying to prod people toward China’s market via reverse-psychology, or is he trying to keep them away in order to achieve some end himself? The only thing that seems sure is that he has a vested interest somewhere.