'Greece Is Bankrupt' and Will Restructure: Market Pro
"Greece is bankrupt" and will have to restructure sooner than later over sovereign debt issues, Kyle Bass, managing partner of Hyman Capital, told CNBC Thursday.
"No one really understands what Greece's problems are. They spend 15 percent of their revenue on interest alone and their interest costs today are 4.5 percent," Bass said.
The European Union is trying to understand how best to deal with Greece, he added. "The bottom line is when Greece restructures ... the commodities complex should have a sell-off along with the euro."
"What happens, I don't know, nobody knows what happens—it's a very political situation," he went on to say.
Also, the massive earthquake that struck Japan two months ago will cost them [Japan] 30-50 trillion yen, Bass said. "To put that in perspective, they're going to run a 50 trillion yen fiscal deficit this year. 30- to- 50 trillion yen over the next two years ... is very problematic for them."
"From the fiscal side, all this does is speed up the fiscal problem in Japan," he concluded.
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