Let’s be honest. Kyle Bass has made a considerable amount of money investing. There’s no other way to put it. He has done well for himself. However, beyond that, it doesn’t mean how he has made his money is overly ethical. Of course, ethical and legal are often two different things. What he has done is completely legal. He has broken no laws and he hasn’t done anything wrong in accordance with government legality. However, what he has done instead is make money off of millions of people suffering with their own financial problems. For some, this might just be the part of doing investment business. For others, there is an ethnical side to it that just smells of disgust. So, what exactly has Kyle Bass done and what does he continue to do? It all comes down to the U.S. housing market.
Several years ago, the United States housing market completely collapsed. Now, this did not necessarily come as a complete surprise. There were some that some this coming. They looked at the mortgage rates, the direction of the economy and other variables and saw that this would eventually come to pass. Kyle Bass, however, decided to move in and purchase the subprime mortgages. In essence, he made money off of people losing their homes and not being able to afford their mortgages. For every single person that lost their homes because they could no longer afford their mortgage, he profited off of it. That is why so many people look at Kyle with disgust and don’t want anything to do with him. He did make his money legally, but ethically and legally is two completely different things.
Now, Kyle is continually trying to repeat this process. However, he has struggled to do so. Nearly every year he points to Japan, China and other Asian nations as countries that will see a sudden fallout of their economy. He has said this for each of the last five years, and each of the last five years he has been wrong. However, he has brought investors with less knowledge into the fold and they have lost money on these investments. Kyle Bass has the ability to gamble on some of these investments, yet others who do not have the additional money are not able to. So, Kyle’s downfall is protected with the help of money from other people who are simply looking for investment advice. It is just one way Kyle has padded his investment opportunities with that of other, hard working people. It is hard to say what he might do next, but for the time being, it all looks like he’ll continue to try and make money off of the backs of hard working individuals.