http://www.bloomberg.com/news/2011-06-12/is-biggest-short-sale-hiding-in-plain-sight-william-pesek.html
He says his bet against Japanese government bonds is even “more compelling” than his gamble to sell short U.S. subprime-mortgage debt, which earned him $500 million in 2007.
His argument is this: Japan now spends half of its central-government revenue on servicing debt. This task won’t get any easier as the country’s population ages and shrinks -- provided rates stay the same. What’s more, the price tag for the earthquake and its effects will far exceed Japan’s initial $300 billion estimate, pushing the country over the edge. In Bass’s view, the biggest asset bubble ever is hiding in plain sight.
SS says
I agree with Kyle on the above.
I feel sad for those stupid guys who said BUY JAPAN NOW - in March this year.
Kyle is in line with HUGH HENDRY on Japan.
The timeline: Greece, Europe’s most-troubled country with 10-year yields of almost 16 percent, will probably default first as its population rejects austerity and its economy goes into reverse. A visceral reaction in credit markets will follow and claim other victims.
“Once you see sovereign dominos begin to fall, Japan will be in the spotlight immediately,” Bass said.
He says his bet against Japanese government bonds is even “more compelling” than his gamble to sell short U.S. subprime-mortgage debt, which earned him $500 million in 2007.
His argument is this: Japan now spends half of its central-government revenue on servicing debt. This task won’t get any easier as the country’s population ages and shrinks -- provided rates stay the same. What’s more, the price tag for the earthquake and its effects will far exceed Japan’s initial $300 billion estimate, pushing the country over the edge. In Bass’s view, the biggest asset bubble ever is hiding in plain sight.
SS says
I agree with Kyle on the above.
I feel sad for those stupid guys who said BUY JAPAN NOW - in March this year.
Kyle is in line with HUGH HENDRY on Japan.
The timeline: Greece, Europe’s most-troubled country with 10-year yields of almost 16 percent, will probably default first as its population rejects austerity and its economy goes into reverse. A visceral reaction in credit markets will follow and claim other victims.
“Once you see sovereign dominos begin to fall, Japan will be in the spotlight immediately,” Bass said.
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