Renowned hedge fund manager Kyle Bass joined Hedgeye CEO Keith McCullough for a “pro-to-pro” discussion on China, global recession, and why interest rates may head to near zero by 2020. Watch the entire hour-long webcast below. (**This webcast was originally broadcast live on Hedgeye.com on April 8, 2019.**)
As Bass said in the webcast:
“When you think about leverage in the system, China has put together the most reckless financial experiment in world history."
Here's another important quote.
"When you think about the size of the credit impulse within their system, the US economy is roughly 20 trillion. Their's is roughly $13 trillion. [China's] banking system is north of $50 trillion. Our’s is $20 trillion. So just think about it. I know they're smart over there, but China has only been at this capital markets thing for about 20 years at most. We've been at it for over a hundred and look at the predicament the U.S. into in 2007."