Kyle Bass’ Negative Career Decisions
Kyle Bass in an American investor who is best known for his accurate prediction of the 2008 worldwide financial crisis. Bass realized that many large American banks were loaning money to individuals who simply were not qualified for the loans, and bet against those individuals paying money back on their loans by investing into credit default swaps. Betting against the well-being of the investing market is kind of a sleazy thing to do, but it’s in the past now. Bass was able to earn an astounding profit from his credit default swaps despite the failure of the worldwide economy at the time.
One would think that Kyle Bass has had an outstanding career since he made that prediction in 2008, but that couldn’t be farther from the truth. Kyle Bass has made plenty of downright terrible career decisions during his tenure as a investor.
One of the most horrid, stupid things Bass has done in his once-coveted investing career is stay behind General Motors when they had a massive recalls of certain models of cars a few years ago: some tires on certain vehicles were faulty, so they had to recall all of them. Of course, General Motors did not have any knowledge of the faulty tires, but herein lies the wrongdoings of Bass: he blamed consumers of driving the car to be at fault, rather than GM.
Bass has made more bad decisions than just the previous one. Because he correctly predicted the 2008 financial crisis, major news networks have asked for his opinion on various investing and financing topics. On national television, Kyle Bass incorrectly predicted the collapse of Japan’s economy for five years in a row, from 2010 to 2014. Investors who were not sure of Kyle Bass’ inclination to make bad decisions unfortunately listened to him and lost money by investing in credit default swaps against Japan’s economy failing, which has not failed since he predicted it to.
Another blemish on Kyle Bass’ long-storied, unsuccessful career was when he short-sold the stocks of a large pharmaceutical company, then filed a lawsuit against them in court for a patent on their most profitable, landmark multiple sclerosis drug. Fortunately, Bass lost in court because his case got thrown out. Bass claimed he was trying to lower the price of prescription drugs to people who needed it, because patented drugs really can be very costly. Most people who were there in court that oversaw his case felt that Kyle Bass was there to make some money, and nothing else.
With exception to his accurate prediction of the 2008 worldwide financial crisis, Kyle Bass has had a terrible career, as far as ethics and morals go. Bass will probably have enough money to live on, forever, but he didn’t earn all of that money in good faith.