Superstar hedge fund manager Kyle Bass predicts investors are getting ready to pour billion into Greek economy once New Democracy leader, neoliberal Kyriakos Mitsotakis, takes the premiership from the hands of left-wing Alexis Tsipras. 15 billion euros in bank deposits will return and foreign investors will follow pouring billio9ns of euros, US Dollars and whatever other currency they will want to invest.
Bass predicts also snap elections between April and September 2018. Does he know more than we do? And why should Tsipras call for snap elections before the end of the Greek program in August?
Unfortunately, Kyle Bass does not predict when the restrictions of capital controls will be lifted: before or after bank depositors bring their billions back to the Greek banks?
But so it is with predictions. Important parameters are of no significance.
Kyle Bass predicts investors are getting ready to pour billions back into Greek economy
Superstar hedge fund manager Kyle Bass thinks Greece is turning a corner on its decade-long debt crisis that mired the country in a depression and whacked 28 percent from GDP. The founder and chief investment officer of Hayman Capital Management, which manages 18 accounts totaling an estimated $815 million in assets under management, has a good pulse reading on the Greek economy and political climate. For years he’s been invested in Greek bank stocks that are trading at a quarter of book value.
According to Bass, foreign investors are waiting on the sidelines for a tectonic political shift to take place in 2018. The country is now preparing to end its international bailout program next year, with more than €320 billion (US$372 billion) in national debt.
“My best guess is a snap election for prime minister will be called between April and September of next year and Prime Minister Alexis Tsipras will lose power. When that happens, there will be a massive move into the Greek stock market. Big money will flow in as investors feel more confident with a more moderate administration.
Mitsotakis’ vision is a downsizing of the public sector and bold tax reforms that include a tax reduction for businesses from 29 percent to 20 percent, slashing the extraordinary property tax by 30 percent in two years and a 5 percent cut in the dividend tax. He also vows to speed up the privatization process while pushing forward major projects, including investment in the former Athens airport.
“From my perspective, we have to fix two things in Greece for the market to take off,” Bass said. “First, Greeks have to stop evading taxes. Second, they have to start repaying their loans.” (full story CNBC.com)
PS I need to google how the Russians tried to influence elections in the USA… 😛