kyle bass

Hayman Capital's Kyle Bass has been betting on the failure of governments for awhile now, and he's obviously relishing all the latest headlines.
His latest letter, which was posted by GuruFocus is titled "Imminent Defaults" and in it he spells out what he sees as the warning signs for a country, and which countries are already screwed.
The countries he lists are:
"Greece, Italy, Japan, Ireland, Iceland, Japan, Spain, Belgium, Japan, Porutgal, France, and have we mentioned Japan."
What to him makes a country vulnerable?
Says Bass:
"While there are many inputs that are functionally relevant, we look for a couple of warning signs. We move a nation out of risk free category ass oon as they spend more than 10% of their central government revenues on interest alone. We also worry about debt loads that represent more than 5x the revenuf of the responsible government. When these and other characteristics are met or exceeded, it can quickly move the country into checkmate."
After spending some time blasting the EFSF and Europe, he turns back to Japan, wherein he declares: "Japan Will Soon Be On The Front Page."
He writes:
Madoff's scheme collapsed for one primary reason -- he had more investors exiting his scheme than entering. As soon as this happened it was over. According to this most recent census, the Japanese population peaked within the last few years at 127.9 million and has since lost 3 million. Japan has one of the most homogeneous -- and some might even call it xenophobic -- soceities of any developed nation in the world. It is no secret that there is no love lost between the Japanese and their neighbors, and therefore, immigration is an unlikely answer to a dwindling poulace.
....
It is indisputable that Japan has the worst on balance sheet debt burden in the world (roughly 229% of GDP).
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The European debt crisis will simply act as an accelerant to the Japanese situation as it will most likely change the qualitative thoughts of JGB investors. We believe that the sequence of events is set to begin in the new few months.