If you like your glass half full then don’t watch this video. If you’re long equities, Japan or Europe then do watch it.

For those who prefer the written word here is a good summary of the interview Kyle Bass: Betting on bonds not stocks

• What did Madoff and Stanford teach us…you can keep a ridiculous Ponzi going for a long time as long as you have one thing…new money coming in.
• Japan is spending more than twice what they bring in.  They are already at the Keynesian endpoint.
• The Japanese government bond is one of the riskiest investments in the world today.
• How many of your problems that you kicked down the road have actually gotten better?

To which I’ll add he has little faith or more accurately no faith in the Euro stress test and is positive there will be sovereign restructuring. He can see no reason to own most common equities now.

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