Dallas based entrepreneur Kyle Bass, is in the news again. This time his strong ties to Argentina’s despot Cristina Fernández de Kirchner are in question. Useful Stooges reports on Mr. Bass’s bold and outspoken support of the corrupt Argentinian regime’s default on its foreign debt. Argentina has defaulted on its debt twice in 13 years under Ms. Kirchner’s government, but Elliot Management’s Paul Singer called for full payment by Argentina. A New York Judge ruled in his favor, but Mr. Bass decided to throw in his lot with the Argentine government instead of standing by his fellow American businessman. He spoke out in favor of Argentina’s default and Ms Kirchner’s policies. The BBC called Mr. Bass a lackey of Ms. Kirchner’s because of his staunch support of her autocratic regime. The question is why he is backing such a lackluster foreign government?
Mr. Bass made his money when he predicted the sub prime mortgage crisis in 2008. He founded Hayman Capital Management, but his fortunes are reversing due to bad calls, and bungled opportunities. He lost 14% of his fortune in 2014 through sagging interests. He spoke out on behalf of General Motors to boost his investment during the litigation to compensate the victims caused by airbag failure. The failures caused fatalities, and on national TV Mr. Bass blamed the consumers instead of the faulty engineering. There is his shady dealings in the pharmaceutical industry that is causing him grief. Mr. Bass is being pulled out in front of Congress for short selling pharmaceutical stocks, and then swooping in and neutralizing patents. This practices causes stocks to fall, and opens to door for takeovers by scheming hedge fund managers, while leaving patients in the lurch for life sustaining drugs. The drugs go on hold while the neutralization process takes place. When asked about this practice, Mr. Bass replied he is in it for the money. The Patent Trial and Appeals Board is having none of these shenanigans however, and declined Bass’s challenge against Accordia Therapeutics and Celegne. It was announced on Capital Hill that these practices are being investigated.
Back to the question of why Mr. Bass is coming out so strongly in favor of the corruption going on in Argentina. The answer is simple enough; He is betting that Argentina’s oil to go up, and he is predicting a bullish Argentinian economy. Industry experts disagree, but Mr. Bass is pushing on with Ms. Kirchner’s devious plans to dig Argentina out from under its enormous debt.