Kyle Bass: “The Next 18 Months Will Redefine Economic Orthodoxy For The West”

There are three key myths about Japan that Bass shows are simply false but remain repeated for the comfort of the cognitively biased investment community:

1) The current account allows the country to self-finance its deficit

2) The Bank of Japan is not monetizing debt

3) Retail investors will always support the JGB marketplace

From the nation’s own largest institutions forced to sell assets to the crushing demographics, Bass explains – in greater clarity than the soundbite-idiocy we get each night from Abe/Kuroda/Aso etc…

The smartest money is leaving Japan in a hurry already – Q4 2012 was the largest M&A quarter ever for Japanese firms buying foreign entities – Western productive assets – (just as was seen in Mexico before their crisis) as they try to get out of JPY

via Kyle Bass: “The Next 18 Months Will Redefine Economic Orthodoxy For The West” | AdvisorAnalyst Views.

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