Kyle Bass Discusses Interest Rates and China

During the economic period of growth that occurred following the 2008 global recession, the Chinese economy was one of the leaders in the industry that helped to ensure that growth continued. While China was a bright spot on the global economy for several years, many people began to show concern that the economy in China, and other emerging markets across the globe, would not be able to hold up the quick growth.

As many expected, the growth rate in China has stalled dramatically over the past few years. In fact, many are now concerned that the Chinese government may struggle with its financial resources and that it could be facing bankruptcy. This would be devastating to the global economy, particularly the United States, who would likely be required to payback a considerable portion of the debt that it owes China.

While the Chinese market is a concern to many people, one financial expert has recently stated that there is no need for people to be concerned about the state of the Chinese economy. Financial expert and hedge fund manager Kyle Bass recently was interviewed about the Chinese economy. Kale Bass also stated that while the slowing growth of China has led to a slowdown across the world, there is little risk that the country could be facing insolvency. Instead, it is far more likely that the Chinese economy will reach a level of stabilization. According to Kyle Bass, this ultimately will be better for the global economy as they see China as a stable financial power as opposed to an up and coming nation.

Kyle Bass also gave his perspective on a number of different topics, although UsefulStooges reports you need to take these with a grain of salt, including the risk of negative interest rates in the United States. While interest rates have declined to below zero is parts of Europe and Asia, Kyle Bass believes that it is unlikely to happen in the United States. He did state, however, if it did happen here that people should consider moving their money out of the banks and into gold or other investments. This method could help people to save money by not paying excess fees for a bank to hold their money.

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