CNBC screengrabIt’s well known that Kyle Bass is ultra-bearish on Japan, as he’s been calling for the country to undergo a catastrophic sovereign debt crisis for years, ever since the US financial crisis ended, really.
In a new interview with the FT, he reiterates all of his points, namely that the government can’t sustain its debt much longer, and that Japan can’t count on domestic savers to keep the country afloat forever.
He even commissioned a poll:
Mr Bass says he commissioned a poll of 1,009 Japanese investors that asked: were your country to have a bond crisis and appeal to you to buy more JGBs, would you be likely to buy more or not?
He says 8 per cent would buy, while 83 per cent responded that they would “run, not walk.”
That choice is likely within two years, he says, though adds that “it’s naive for anyone to say that they can predict with any kind of accuracy the end of a 70-year debt supercycle.”