The gargantuan stimulus Japan is pumping into its economy will have to be even larger to achieve the desired results, said Hayman Capital founder Kyle Bass.
"They're going to have to make the plan even bigger than they said if they're going to successfully contain rates," Bass told CNBC's "Squawk on the Street."
The reason is the "rational investor paradox," said the hedge fund honcho who has been outspoken in his criticism of Japan's fiscal policies. "If Bank of Japan investors believe in Abenomics and (BOJ Gov. Haruhiko) Kuroda's plan to double the monetary base in the next couple years and generate some inflation and growth, then a rational investor who holds their bonds is likely to sell a portion if not all of them," Bass said.