Bulletin
Investor Alert
×

Key Words Archives | Email alerts

Aug. 24, 2019, 11:45 a.m. EDT

Kyle Bass on where the global economy is headed: ‘This is insane’

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Industrial Average (DJIA)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Shawn Langlois, MarketWatch


Getty Images
Kyle Bass

‘This is insane. The Japanese are going to keep going. The Chinese print money like it’s a national pastime today. Europe is going to restart QE.’

That’s Hayman Capital Management fund manager Kyle Bass talking on CNBC Tuesday about how monetary easing is catching fire around the world and will eventually bring U.S. interest rates all the way down to zero.

“We’re the only country that has an integer in front of our bond yields,” he said. “We have 90% of the world’s investment-grade debt. We actually have rule of law and we have a decent economy. All the money is going to come here.”

Expectations are calling for lower rates again in the U.S. next month, following a cut of 25 basis points in July, according to the CME Group’s FedWatch tool.

When rates eventually reach zero in the U.S. amid slowing growth in Europe and China, Bass warns, it will only fan the flames of inequality in America.

“The unintended consequences of central bank printing are that it makes the rich even richer, it makes the middle class stay where they are and it makes the poor stay poor,” Bass explained to CNBC.

Watch the full interview:

It’s been a rocky stretch for the stock market of late, but Tuesday’s session was relatively mild as the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.14% and the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.07% were both down less than 1%, at last check.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,219.52
+37.07 +0.14%
Volume: 255.26M
Sept. 13, 2019 4:56p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,007.39
-2.18 -0.07%
Volume: 1.89B
Sept. 13, 2019 4:56p
loading...

Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

This Story has 0 Comments
Be the first to comment
More News In
Economy & Politics

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.