The investing world is a harsh one, and it takes a lot of dedication to decipher the intricacies of it. Many experts of investing have been great at what they do as well as ethical, unfortunately some experts are not. One emerging voice was that of Kyle Bass.
Who Is Kyle Bass?
Bass is a man who had some success when he debuted in the financial world. He saw some success with his Dallas-based fund named: the Hayman Capital Management back in 2006. Many saw him as a visionary because he predicted the mortgage crash in 2008.
But it was all an elaborate ruse to make himself seem like a financial genius because his true colors emerged in the subsequent years.
The Apparent Downfall of Kyle Bass
Many economist and financial giants have quickly turned on Bass, and for good reason. Several predictions did not come true. For one, Bass repeatedly said that Japan was on the verge of a financial collapse. And, year after year, his prediction turned out to be wrong.
But faulty predictions is not the only thing that has turned people against Bass–it is also his ethical behavior. One thing that really electrified honest investors was his dishonesty when he invested in certain companies. For example, Kyle Bass invested in GM around the time they came under fire regarding their faulty airbags. Bass decided, against the amassing evidence of bad airbags, to say that the accidents were caused by the passengers themselves. He blamed drunkenness or a failure to put seat-belts on, instead of telling the truth.
Bass also began to dip his hand into the pharmaceutical companies. He would, essentially short-sell stocks, use his front company to challenge patents, and finally drive stocks down. What he did made him a lot of money, but the pharmaceutical companies lost a lot of money because of his actions. So several of those companies were forced to raise prices on their products, which ended up costing the American people a lot of money.
Bass, of course, said that challenging patents was good, as it would drive competition amongst pharmaceutical companies. This competition would eventually drive the cost of medicine down, which apparently was his goal. But many of his critics have denounced his explanation and showed that Bass’intentions were never to help the American people but further his gains through any means necessary.
Kyle Bass has done this and a lot more to tarnish the reputation of an investor by being dishonest and swindling the American people to make a quick buck. He is not an example to aspire to, but at least you can learn what uncontrollable greed can do to a man.