InvestorMind

We already know that Hayman Capital's Kyle Bass is getting ready for the worst. Case in point, he keeps all kinds of weapons on his Texas compound and he's buying up nickels because he believes the coins will eventually be worth more than 5 cents. He's also bullish on gold, and he reminded CNBC why in an interview today: "The pattern is set, we're going to continue to monetize fiscal deficits by expanding central bank balance sheets... I call it creating money out of thin air." He believes this so fully that while he was on the board of the University of Texas, he had them take physical delivery of $1 billion in gold. You can watch him explain why in the video below (via CNBC), but in a nutshell, he figured out that it would be much cheaper to store it. And for the record, Bass doesn't advocate going back to the gold standard, he thinks that's impractical. Instead, he believes our economy should be tied to a basket of goods and services. Read...

Kyle Bass, the Dallas hedge-fund manager, urged overseers of Texas (STOTX1)’s state university endowment, the second-largest U.S. college fund, to stick with a $1 billion investment in gold bullion even as the fund’s assets decline. “I’m against selling any of the gold,” Bass said today at a meeting of fund directors in Austin, citing the need for a hedge against mounting risks driven by government deficits in the U.S. and Europe. “As every day goes by, I see deflation in the things you own and inflation in the things you need.” The $19.1 billion in endowment funds overseen by the University of Texas Investment Management Co., or Utimco, lost almost 3.8 percent on invested assets in the four months through December, preliminary figures distributed today show. The Standard & Poor’s 500 Index of shares gained almost 4 percent over the same period, including reinvested dividends. In 2011, the Texas fund’s allocations rose in real estate, natural resources and hedges to protect aga...

Kyle Bass, the Dallas-based hedge fund manager who said in 2009 that governments would default within three years, said Greek, Portuguese and Spanish depositors will withdraw money from banks in the coming months. “Just as Latvians ran to the ATMs this weekend, so will depositors all over peripheral Europe in the months ahead,” Bass, who runs Hayman Capital Management LP, said in an investor letter. “Deposits are now declining at an accelerated pace. What’s surprising is that it hasn’t happened much sooner.” In Greece, business and household bank deposits have slumped 26 percent in the past two years to 176 billion euros ($229 billion), and fell in October by the most since the nation joined the euro, according to the Bank of Greece. There were 2.24 trillion euros of overnight deposits with euro-region financial institutions at the end of September, down from 2.26 trillion in July, according to data compiled by Bloomberg. Latvians pulled about $54 million from local Swedbank AB a...

In this letter to investors written by Kyle Bass of Hayman Capital Management. He talks about what he thinks may lie ahead for Europe and Japan. Hayman_Nov2011

If readers have the sense there has been a deluge of Kyle Bass reading (and viewing) materials on Zero Hedge in the past two weeks, it is because there has been: and why not - after all, unlike all other cheap talking heads, and know-nothing pundits who merely need a suit to make an appearance on one of the TV's financial comedy channels, Kyle has been consistent in the most important thing - telling the truth. Today, he took his resurgent popularity to CNBC which always knows which way the winds blow, and told David Faber more or less everything that Zero Hedge readers know already about Europe's collapse, on why the ECB will print but only after a default, and about the inevitable global debt restructuring. There was a twist: as most regulars here know, the key topic of the past week, of December, and potentially of 2011, is the limitless "fractional Prime Broker lending" of assets-cum-liabilities (and when it comes to the realization that one's gold itself m...

Kyle Bass is the founder of Hayman Capital Hedge Fund who made millions betting against subprime mortgages and is now betting on the collapse of Europe. Here's an interview of Kyle Bass on BBC's Hardtalk. Some quotes from the interview. ""Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!" "They Have A German Pope And An Italian Central Banker"