Value Investing Congress: Kyle Bass Says Japan Will Default

Kyle Bass is speaking at the Value Investing Congress and he is saying that Japan will default on its sovereign debt. Kyle Bass believes it's only a matter of when, not if. Bass notes that debt servicing is going to exceed revenue. Bass notes that Japan's cash expenditures for social services are $20 trillion, and its revenues are $24 trillion. He doesn't see how Japan can fund itself in the next 2 or 3 years. Barring some kind of scheme, Japan will default. He doesn't see Japan allowing integration with Japan or Korea through immigration, and will ultimately default.