of the West, is our guiding light. They've bailed out their
economy and their banks. They've bailed out big zombie
companies.
[moral hazard. Japanese Banksters' kids playing with toys, Ferraris]
Their jobs have left for China. Birth rates are down and
people are getting poorer. But, Japan has refused to give
in to reality.
CRAPTASTIC "Reira! got me on ma knees"
That's great. Get ready for another 15 years of bullcrap for
the rest of us.
Retiring soon? don't
finishing school? get another degree
working 2 jobs? get a third
got skills? move to China or Saudi
need more room for your Chinese products?
get a smaller home
-that's only because you can't afford your rent any more,
having lost your mortgage too.
what I'm saying is: our elected leaders have already
marked out the post 2008 decade as a zero sum gain, at best.
They're only doing that because they don't want to bring
the banks to heal, even between election campaigns.
They'd rather ruin every one the social democratic habits
we had, and have built for us, as a society. It will all be
privatised and we're going back to the Middle Ages.
How's your gardening, paisan?
But, there's hope, from a hedge fund manager! Ain't things
screwed up enough?
Anyway, Kyle Bass seems to think that Japan will implode
in 3-5 years. The only hope is that the other big Western
countries will not have enough wiggle room to get their
banking untangled by then, which will make the whole
Wicker Man globalised system burn up.
I'll explain the wiggle room conundrum. It's akin to a
Mexican standoff, with everybody holding their guns,
butt nobody can act because of the risk to themselves.
That's this vaunted globalised financial market. It's
ready-aye-ready for mass financial hari-kiri. So, if
the West pulls out of its Japanese investments too
quickly, Japan goes tits-up, and then every other
Western country goes tits-up.
[bad for everybody, short term, but then the Debt
Austerity Olympics will have ended.]
China & India are withdrawing from Dollar World,
with its Treasury paper & derivatives,
but oh, so slowly, as to not harm their remaining
investments.
So, 3-5 years for the Bonfire of the Financials. Stock
up on wood for heating.
Read 'em and weep: Mish
Kyle Bass on the End of the Debt Supercycle and a Coming Massive Devaluation of the Yen; Most Difficult Time to Invest; The Belief Bubble
Late last month, Kyle Bass, managing partner of Hayman Capital, shared his thoughts in a video at the University of Virginia Darden School of Business Investing Conference with Professor Ken Eades.
It is a fantastic interview that echoes many of the things I have been saying about Japan for quite some time.
Link if video does not play: Conversation with Kyle Bass
Interview Snips
... A lot has happened in Japan in the last 12 months. In fact, in the last 2 months we believe Japan has crossed that proverbial Rubicon. We think that you've seen 20 years of conjecture regarding Japan Japan
Think about it. You have a secular decline in the population, you have a balance of trade that is literally being rewritten and falling off a cliff, and their GDP is now tracking negative 3.5 or 4 percent.
So what has to happen in Japan. Now their backs are against the wall. They have a full crisis, and they absolutely have to change the manner in which they deal with their currency. And so we think over the last couple of months they have crossed the final Rubicon that turns the whole situation around and weakens the Yen from a currency perspective. Then you are going to start to see, we think, in the next 12-18 months a move in their rates.
Basically Japan is entering its final checkmate phase of the game.
