Michael Bloomberg
is not only the former mayor of New York City and a recently
announced candidate for president of the United States; he is also
the richest person in New York State and the fourteenth richest
person on earth. This wealth, however, has not prevented him from
praising
Communist China. To be sure, Bloomberg refuses to admit that China
is, in fact, Communist. Well, yes, he acknowledged that it’s run by
something called the Communist Party, but, in a September 27
interview with PBS, he was quick to add that the Party “wants to
stay in power in China, and they listen to the public. When the
public says I can’t breathe the air, Xi Jinping is not a dictator;
he has to satisfy his constituents or he’s not going to survive.”
Beijing
Politically correct though PBS may be,
Bloomberg’s interviewer, Margaret Hoover, was, to her credit, so
taken aback by Bloomberg’s claim that she actually responded by
saying, with obvious astonishment: “He’s not a dictator?” “No,”
replied Bloomberg. “He has a constituency to answer to.” Hoover,
admirably, wasn’t buying this fantasy: “He doesn’t have a vote.
He doesn’t have a democracy. He’s not held accountable by
voters.”
Bloomberg went on to defend China’s
environmental policies. Note that we’re speaking of a country that
is such a serious polluter that a large percentage of its people walk
the streets wearing masks to prevent them from inhaling deadly
particles.
Beijing at street level
Is Bloomberg dumb? Of course not. You don’t get to be a billionaire by being an idiot. The fact is that few Americans who are as rich as he is don’t have financial interests in China. While the billionaire currently in the White House feels he owes it to the American people to take on the hefty Chinese tariffs that have contributed to that country’s swift economic growth and to the destruction of much of the American manufacturing sector, other U.S. billionaires, such as Bloomberg, prefer not to rock the boat and thereby protect their own financial interests at the expense of American factory workers. As New York magazine noted when reporting on Bloomberg’s remarks earlier this month, “The billionaire has vast financial interests in China, and those interests have allegedly compromised his civic-minded endeavors in the past. In 2013, the New York Times reported that Bloomberg News had killed an investigation that had threatened to upset Chinese officials.
Xi Jinping
As Kim Hirsch asked
on December 3 at the Victory Girls Blog, “What is it about
billionaires when dollar signs mean more to them than oppression of
other humans? Or even the security of their own nation?” Hirsch
noted that China has not only “organized mass detentions of Uighur
Muslims in the western Xinjiang province” but that the
International Consortium of Investigative Journalists (ICIJ), in
November, “exposed China’s operating manuals that use data
analysis to select whom they will detain. Not criminal activity. Just
algorithms. As a result, people randomly disappear.” Hirsch quoted
an Australian analyst who explained: “That’s how state terror
works. Part of the fear that this instills is that you don’t know
when you’re not OK.” But what should any of this matter to the
fourteenth richest person on earth, who, as Hirsch reported, is
“financing Chinese companies through US investor dollars he sends
to the Chinese bond market.”
Trump
It’s funny how these things work.
Bloomberg is 77 years old, and has $54 billion in assets. You might
think that at this stage of his life, he’d figure he had enough
money and, like Trump (who has lost billions in net worth since he
became president), decide to give back. Well, Bloomberg seems to be
the poster boy for the fact that some people, no matter how rich,
just aren’t interested in giving back. Trump, whatever you think of
him, is at least a regulation-cutter driven by a core belief in
individual freedom: Bloomberg, famous for banning large sodas while
mayor of New York, is a control freak, a man who craves power, and a
man whose love of power and control are palpably driven by a desire
to ensure that his bank balance keeps rising until he meets his maker
– to whom, if that event actually takes place, he will have to
explain his readiness to whitewash Chinese Communism, sell out
American labor, and pick up more money than one man could ever spend
in a hundred lifetimes.
We’ve written about Venezuela a great deal at this sight, but not lately. What more is there to say? We reported faithfully on its decline, which now seems pretty much complete. Why repeat ourselves? Given what the people of Venezuela are being put through because of the idiocy of chavismo, it seems almost cruel – almost like rubbing it in, like slumming, like saying “I told you so” – to keep returning to the scene of the crime and gazing, like callous rubberneckers at a car accident, at the sad wreckage of Hugo’s and Nicolás’s tyranny.
On the other hand, there have been a
few developments worth taking note of. For example, the fact that
while most of the governments in the Western hemisphere have joined
the U.S. in recognizing Juan Guaidó as the new president of the
beleaguered country, Maduro, the former bus driver who inherited the
Bolivarian throne from Chávez, still has allies.
Hugo Chavez
One of them is Cuba, whose Communist regime was the model for Chávez’s own. As Eli Lake of Bloomberg News reported recently, the Venezuelan military and police are infiltrated with members of Cuban intelligence, some of whom are responsible for giving Maduro daily briefings. Thousands of Cuban “security forces” harass Venezuelan citizens. The Organization of American States has said that Cuba has what amounts to an “occupying army” in Venezuela numbering about 15,000. “This contingent of Cuban advisers,” Lake wrote “will make it much more difficult for Venezuela’s military to help Guaidó prepare for new elections, as it is being pressured to do.”
Moreover, the ties Chávez forged with Russia and China are still strong. Maduro has shipped cheap oil to China and allowed Russian warships into its ports. Russia, like Cuba, has “military advisers” in Venezuela, and promised in late March to keep them there as long as Maduro needed them — in response to which Trump, while meeting with Guaidó’s wife at the White House, demanded that they be called home. The ayatollas in Iran also continue to support Maduro. Those alliances, of course, are to be expected. Rather more surprising is the apparent coziness between Mexico’s new leftist president, Andres Manuel Lopez Obrador, and Maduro, whom he invited to his inauguration in January.
Juan Guaido
Even after month after month of painful headlines about the present social and economic conditions in what was once one of the world’s richest countries, some Western politicians continued to profess admiration for Maduro, and some Western media not only find ingenious ways to avoid blaming his nation’s catastrophe on socialism but even try to perform at least a partial whitewash that catastrophe. As recently as in late January, for example, the BBC described Venezuela as having experienced a “reduction in inequality and poverty.” What kind of way is that to describe a country where countless people are eating pets, countless more are fleeing to neighboring Colombia, and the inflation rate is just shy of 10 million percent?
For many people in South Korea, the arrest, trial, conviction, and imprisonment last year of Lee Jae-young – that country’s richest man and the de facto head of Samsung, the country’s largest business – signaled the start of a bright new era. After decades of corruption in the chaebols, the powerful family-run conglomerates that have dominated the postwar South Korean economy, the ouster last year of President Park Geun-hye and her replacement by Moon Jae-in, who promised that the traditionally well-connected leaders of these firms would no longer operate with impunity, seemed indeed to represent radical and long hoped-for change.
Park Geung-hye
Yet, as we discussed on Tuesday, all hopes for revolutionary reform were crushed last month when a High Court judge abruptly ordered Lee (known in the West as Jay Y. Lee) freed from prison.
Lee, according to Bloomberg News, “appeared stunned.” So, reported the Wall Street Journal, were “some South Korean lawmakers and legal experts.” The South Korean public was stunned, too. And angry. Street protests ensued. Moon had promised change, but this was business as usual. Over the decades, one chaebol honcho after another had been tried on corruption charges only to be found not guilty, or convicted and then pardoned, or – as happened with Lee’s father in 2008 – given a suspended sentence. Meanwhile, as the New York Times has noted, South Korean courts have “routinely sentenced lesser-known white-collar criminals to far longer terms for lesser offenses.”
Here it was all over again. “The ‘Republic of Samsung’ lives on,” griped Professor Kwon Young-june of Kyung Hee University. The judge’s decision, complained Park Yong-jin, a member of the National Assembly, only “confirmed once again that Samsung is above the law and the court.”
A view of the site of the Pyeongchang Olympics
Indeed. The High Court’s ruling – which came only days before the opening of the Winter Olympics in Pyeongchang, South Korea – is absurd on its face. Among the items of evidence that senior judge Cheong Hyung-sik chose to drop down the memory hole was a set of 39 handwrittennotebooks in which an economic adviser to President Park recorded specifics about bribes paid to Park by Lee. Other exhibits in the trial included documentation of exchanges between Park to Lee that made clear the nature of the quid-pro-quo between them.
Samsung headquarters, Seoul
Many commentators had been arguing that South Korea is in the process of changing its stripes; nobody can seriously make that argument now. Lee is a criminal for whom prosecutors sought a sentence of 12 years in prison: that’s how serious they considered his transgressions to be. The prosecutors demonstrated that Lee had committed embezzlement, illegally hidden assets overseas, and lied to the parliament under oath. They proved definitively that he had paid bribes in return for government support for a merger that, as the Financial Times put it, “was crucial for Mr. Lee to cement his hold on the organisation, but was widely criticised for not benefiting shareholders.” As one politician observed, by way of underscoring the absurdity of the High Court’s ruling, Judge Cheong appeared to expect the world to believe that Lee had handed over a fortune to President Park in return for absolutely nothing whatsoever.
So it stands, then. For a brief shining moment there, it looked as though South Korea had experienced a new birth of justice and equal treatment under the law. Alas, Lee’s release shows that under Moon, the old rules remain in place.
In the wake of the March 29 dissolution of Venezuela’s National Assembly, an act that was widely condemned as a coup by President Nicolás Maduro, the economy of that poor, socialism-ravaged country has continued to circle the drain even as opponents of Maduro have taken to the streets day by day to demand their nation back, shouting “No more dictatorship!” Hundreds of thousands of protesters have filled the streets of Caracas and other cities; on Wednesday of last week, which saw the country’s largest protests in years, over 300 protesters were arrested, and pro-Maduro cops, gangsters, and soldiers have caused several deaths. (As of last Friday, the number of fatalities had risen to at least twenty.) Increasing, the capital has resembled a battle zone, with protesters setting up “burning barricades in several neighborhoods” and the military patrolling the night streets in “light-armored vehicles.”
Nicolas Maduro
Maduro himself, who has rejected the idea that the dissolution of the legislature constituted a coup, has said that, on the contrary, the protests against him – which in any free country, of course, would be protected by the right of assembly – amounted to a coup attempt. Vice President Tarek El Aissami has called Maduro’s opponents “terrorist leaders” and accused their followers of “fascist violence.” Another recent Maduro move was barring Henrique Capriles, the top opposition leader, whom Maduro has called “trash,” from running for public office.
Henrique Capriles
Late last week, engineering student David Marval, one of the protesters in Caracas, told Bloomberg News: “Everyone is asking what the plan is….For me, you have to paralyze the entire city.” Informed observers ventured that “Maduro’s grip on power is weakening.” At a press conference, opposition legislator Freddy Guevara said: “Twenty days of resistance and we feel newly born.” Raquel Belfort toldTime Magazine: “This is the moment….People are sick of this….we’ve touched rock bottom. I think if we take to the streets every day we’ll end this government.”
Yet in an April 21 article for The Week, Pascal-Emmanuel Gobry suggested that an end to Maduro’s tyranny is not yet in sight. Venezuela, Gobry lamented, “cannot wake up from its socialist nightmare.” Maduro, he maintained “increasingly looks like a ‘Bolivarian’ version of Vladimir Putin, holding power through corrupt patronage, fear, and the smothering of alternative voices and power centers.”
Father of the revolution: Hugo Chavez
Gobry served up a welter of chilling statistics about Venezuela’s “rotting” economy: “The economy shrank by 18 percent last year, with unemployment at 25 percent, and inflation slated to be 750 percent this year and 2,000 percent the next.” The very real human toll of this socialist disaster is reflected in the fact that during the past year, “74 percent of Venezuelans lost an average of nearly 20 pounds each.” Also, “children are suffering from malnourishment for the first time in the country’s modern history” and “hospitals are running out of even basic drugs.” On April 20, the Wall Street Journal reported that many Venezuelans are, quite simply, too hungry to join in the protests.
Among the recent casualties of the economic free-fall was an announcement on that same date that General Motors, in reaction to a government seizure of one of its factories, was withdrawing entirely from the country, where it has thousands of employees. Oh, and let’s not forget that Caracas is now “the murder capital of the world.” All this in a country with extraordinary human and natural resources that was once, hard as it may now be to believe, on the verge of having a First World economy.
Things are moving fast in South Korea. Early last week we caught up with developments in that country, where a massive scandal is roiling the chaebols (i.e. Samsung, Hyundai, and the other conglomerates that are the cornerstones of the economy) and is threatening to bring down President Park Geun-hye – who stands accused of helping her longtime chum Choi Soon-sil shake the chaebols down to the tune of some $69 million.
Samsung headquarters, Seoul
Since we ran those pieces, there’s been a major new development. Last Wednesday, prosecutors raided Samsung’s headquarters in the Gangnam district of Seoul, the offices of the national pension service, and the office of Hong Wan-sun, who until earlier this year was chief investment officer at the pension service. Last year, as Jonathan Cheng and Eun-Young Jeong wrotein the Wall Street Journal, the pension fund “cast a decisive vote in favor of a merger of two Samsung affiliates” – namely, Cheil Industries and Samsung C&T – “that strengthened the grip of vice chairman and third-generation heir Lee Jae-yong on smartphone maker Samsung Electronics Co., the crown jewel of the business empire.” The raids were reportedly part of a probe of that merger. One detail overlooked by the Journal, but emphasized by one South Korean news source, was that this was the third raid on Samsung in a month – an indication that prosecutors had “already made significant progress in their investigation.” The same source indicated that this time around the raid focused largely on the office of Choi Ji-sung, Samsung’s Future Strategy czar.
Lee Jae-yong
As the Journal‘s reporters noted, all this comes at a tough time for Samsung, which alone accounts for 17% of the South Korean economy. The discovery that Samsung’s Galaxy Note 7 smartphone could overheat and explode in a life-threatening conflagration led to two full recalls, cost over $5 billion, and caused the firm enormous embarrassment, leading to what may be long-lasting brand damage.
Galaxy Note 7
The ultimate impact of this scandal, however, may be even more explosive than the Galaxy Note 7. As Bloomberg News observedin the wake of the Wednesday raids, it’s “raising fresh questions about decades of cozy ties between the nation’s big conglomerates and those in power.” While one president after another (including Park) has promised to limit the chaebols’ influence, each of those presidents has continued to play the same old game, exchanging favors, breaks, perks, etc., for cash on the barrel head. So far, it’s mostly been Park’s reputation that has suffered: once a popular leader, she’s now got an approval rating in the single digits. But as the South Korean public watches the country’s most powerful businessmen being paraded into police interrogation rooms like small-time crooks, and sees prosecutors raiding the offices of the nation’s largest and most prestigious company as if it were a Mafia operation, the chaebols – whose reputations have already been on the skids for years – are bound to lose even more of their luster.
The only thing that’s sure here is that this story is just beginning to get underway. As the details of chaebol corruption continue to be investigated, uncovered, analyzed, and publicized, we’ll continue to monitor developments.
To an extraordinary extent, the Brazilian investment bank BTG Pactual – described by Dan Horchjan of the New York Times as one of the rare Latin American firms of its kind that rival the top Wall Street and European banks – owes its existence, and its years of spectacular success, to a single individual: its self-made founder and CEO, André Esteves. As people in his line of work go, he’s been an unusually prominent figure in Brazil. “More than any other financier,” Horchjan wrote recently, Esteves “was the face of Brazil’s global ambitions during the country’s recent, short-lived boom – in a hurry to grow and unafraid to compete against anyone, anywhere.” Esteves, whom Bloomberg has called the “golden boy” of Brazilian banking, used to say that the letters BTG in the name of his firm stood for “better than Goldman.”
Huw Jenkins
To be sure, the company has had its share of controversies. In 2007, Esteves was convicted of insider trading. In 2013, BTG Pactual partner Charles Rosier was found guilty in the largest insider-trading case in French history. Other accusations of questionable conduct have been made by high-profile observers but not acted upon. In 2006, for example, Esteves sold BTG Pactual’s predecessor, named simply Pactual, to UBS, the Swiss financial-services company, for $2.6 billion (becoming Brazil’s youngest self-made billionaire), only to buy it back three years later for a smaller sum and combining it with his new firm, BTG, to create BTG Pactual. More recently, Esteves and a BTG Pactual director, Huw Jenkins, were sued in a Hong Kong court for $20 million for making “fraudulent misrepresentations” to secure a deal. Three times since 1999, BTG Pactual has been taken to court by Brazilian authorities for shifting money around to mask profits and thus shirk taxes.
Delcídio do Amaral
But all of this is now mere background – perhaps even just a series of footnotes. We talked yesterday about the arrest and conviction of Latin America’s #1 construction contractor, Marcelo Odebrecht, as part of Operation Car Wash, the massive probe into corruption surrounding Brazil’s state-owned oil firm, Petrobras. After his arrest last June, Odebracht tried to slip a note to his lawyers asking them to destroy e-mails that implicated Esteves. The note found its way into the wrong hands, so that Odebrecht inadvertently ended up fingering Esteves. Esteves’s name was also mentioned in a recorded conversation in which suspects in Operation Car Wash – notably Delcidio do Amaral, the top-ranking Senator in the Workers’ Party – discussed plans to pay a potentially unfriendly witness, Nestor Cervero, the former head of Petrobras’s international division, to leave the country. And police found a note suggesting that BTG Pactual had bribed a congressmen to the tune of millions of dollars. On November 25, Esteves was arrested – and so was Amaral, who became the first sitting legislator to be swept up as a result of the Petrobras probe.
Marcelo Odebrecht
In a January report on his downfall, the Times‘s Horchjan highlighted “its apparent senselessness.” He quoted analyst Luis Miguel Santacreu as saying that BTG Pactual’s deals with Petrobras and the Brazilian government “were relatively small and had nothing to do with the bank’s core business, which was very profitable….They didn’t need any of these deals to keep on growing.” Felipe Monteiro, a French professor of strategy, made the same point in a comment to Bloomberg: “He epitomizes the idea of a private, successful, entrepreneurial generation of Brazilian bankers,” and so his involvement in “the most classic type of old politics is somehow strange.” It’s especially strange given that BTG Pactual actually lost money on its government deals even as it was turning tidy profits on its core, non-state-related business.
As Marcelo Odebrecht’s ruin sent the Brazilian construction sector tumbling, so the destruction of Esteves’s career shook the country’s financial sector to its roots. Now BTG Pactual’s shares are worth half of what they were. Its bonds are considered junk.
Another month, another new low for Kyle Bass, the favorite hedge-funder of Argentine autocrats.
First, a quick recap. Bass, who founded his Dallas-based fund, Hayman Capital Management, in 2006, made his fortune – and international headlines – by correctly predicting the 2008 subprime mortgage crisis. For a while there, he was a superstar. He was M. Night Shayamalan in 2001, coming out of nowhere to get nominated for both his script and direction of The Sixth Sense. Observers jumped to the conclusion that Bass was some kind of genius who could do no wrong.
But time went on.
And time has not been kind to Kyle Bass.
The magic touch – if he ever had it – is long gone. Just as Shayamalan has made bad movie after bad movie, Bass has made bad call after bad call.
And he’s done it in full view of the market-following public. The guy seems never to turn down an invitation to go on TV and pontificate – proffering so-called “analysis” that invariably serves his own bottom line.
In addition to making bad calls, he’s made unsavory alliances. While pretty much everyone else in the business thinks that the economically illiterate Argentinian despot Cristina Fernández de Kirchner is the worst thing that ever happened to her country’s economy, Bass can’t stop singing the woman’s praises. Last year, her country defaulted on its sovereign debt for the second time in thirteen years – an action at once indefensible and irrational. But, as we’ve seen, Bass defended it and rationalized it anyway, sounding so outrageously out of touch with reality that, as the New York Post put it, he sounded more like Argentina’s leftist economy minister Axel Kicillof than a U.S. hedge-fund manager.
Cristina Fernández de Kirchner
If Bass came off like one of the hyper-socialist Kirchner’s lackeys and minions, that should be no surprise – because he is one of her lackeys and minions. The BBC has said he has a good relationship with her. That’s putting it mildly: Bass has consistently championed her preposterously irresponsible economic policies and has delicately ignored the cartoonish degree to which she and her breathtakingly amoral cronies have ripped off their own people.
And he’s gone even further than that: when New York Judge Thomas Griesa ruled that Argentina couldn’t just shell out to creditors who’d agreed to settle for reduced amounts, but also had to pay creditors – including Paul Singer of Elliott Management – who insisted on full payment, Bass took Kirchner’s side, calling Singer & co. “immoral” for, as he put it, “holding poor countries as hostages” and “holding up 42 million people from progress.” As we’ve said before, what’s really holding up progress in Argentina are Kirchner and her staggeringly incompetent and corrupt flunkies, whose economic illiteracy and limitless avarice have sent poverty levels sky high in a once affluent nation.
The question is: why? Why is Bass such a Buenos Aires bootlicker? Why is his nose a bright salmon pink from rubbing it up against the walls of the Casa Rosada? What kinds of secret, unscrupulous deals does he have – or want to have – with the you-scratch-my-back-I’ll-scratch-yours Kirchner dynasty?
Bass’s shady ties with Kirchner and her crew aren’t his only ethical lapse since his fifteen minutes of glory. This is, for example, the guy who, in order to make good on his investment in General Motors, went on TV to try to shift the blame for fatalities caused by non-deploying airbags and faulty power steering in GM cars – problems that the auto giant knew about and failed to act on – onto the dead victims themselves, charging (disgustingly) that they’d either been drunk or failed to wear seatbelts.
Then there’s his business ties to the late Chris (American Sniper) Kyle, whose widow, Taya, is now embroiled in a messy lawsuit with one of Bass’s subordinates at Hayman, whom she’s accused of all kinds of unethical behavior. (Imagine!)
And this is also, note well, the guy who, as we’ve reported, came up a year or so ago with a ploy so vile that both houses of Congress are now working overtime – on a bipartisan basis – to close up the loophole that makes it possible.
The scheme is as simple as it is loathsome: Bass – in collusion with one Erich Spangenberg, known as “the world’s most notorious patent troll” – picks out certain pharmaceutical firms, short-sells their stocks, then challenges one or more of their patents via a front organization, the Coalition for Affordable Drugs, that he set up precisely for this purpose. The inevitable result: the stocks go down, Bass rakes in a few million quick simoleons, and the pharma companies’ prices go up while their motive to fund medical research goes down – thus causing palpable harm to the millions of people who depend on those firms’ products to ameliorate their suffering, relieve their symptoms, or prolong (or even save) their lives.
But why care about the sick and infirm when you’re in a position to turn a buck?
When Bass first got called on this sleazy dodge, he insisted he was doing it for a noble reason: bust patents and competition will drive drug prices down. On close examination, his explanation didn’t really make sense – and it didn’t fool anybody. “There’s nothing in this man’s history,” pointed out James C. Greenwood, a pharma industry leader, “to suggest he has any interest in lowering health-care costs.” Scott McKeown, an intellectual-property expert, dismissed Bass’s claim that he’s actually trying to help patients. Bass, he said, was “simply hoping to spook financial markets to his benefit.” Nobody disagrees.
So transparent was his pretense of altruism, in fact, that Bass has dropped it and switched to another defense. In a response to a filing against him by Celgene, the pharma firm that’s been his biggest target, Bass acknowledged he was motivated by a lust for profit – but quickly added that pharmaceutical companies, too, are driven by financial self-interest. So what, he asked, is the difference?
Well, some people do see a difference, and they’re out to stop him. As we’ve noted, a government agency, the Patent Trial and Appeals Board (PTAB), is considering sanctioning Bass for abusing the system with his patent challenges. Also – get this – Celgene has charged Bass and Spangenberg with extortion. Spangenberg, apparently, sent Celgene drafts of patent-challenging petitions, saying, accordingto Bloomberg News, that “he’d file them unless given cash.”
Some observers might wonder why Bass, who for fifteen minutes there was the Wunderkind of the hedge-fund industry, would be engaged in such grubby hijinks. Why would a guy who’s flown so high and cashed in so handsomely sink so low in order to further line his already well-stuffed pockets? An August 13 article in Barron’s helps clear up that question. We already knew that Bass had lost his fabled magic touch. But it turns out things are even worse than we imagined.
Lots worse.
Jim McTague tells the story: “Bass has had a dismal time of it recently….Suddenly, the former luminary can’t seem to get anything right.” While it’s hard “to know exactly how Bass’ funds are doing because he keeps his fund’s actual performance metrics close to the vest,” news reports say he “lost somewhere around 30% in 2014, the mirror opposite of the industry’s best-performing hedge fund managers.”
Thirty percent! No further questions, Your Honor.
McTague quotes a recent article in which Bass himself admitted to having had “a tough year.” “It’s nice to win all of the time,” Bass said. “When you are not winning and everyone else is, it makes life difficult.”
No wonder he’s pulling this chintzy pharma con and sucking up to Cristina Fernández de Kirchner, that despotic queen of the pampas!
According to McTague, Bass’s two current preoccupations are oil (everyone else to the contrary, he’s counting on prices to rise within a year) and Argentina (where, in McTague’s words, Bass continues to be “bullish where others are heading for the exits”).
Bass, reports McTague, refuses to talk about his and Spangenberg’s tacky patent ruse. Meanwhile, the latest news from Capitol Hill is that bills triggered by Bass’s activities have easily cleared both the House and Senate Judiciary Committees, with legislators hoping that by the end of this month a law will be on the books that “cut[s] the legs from under this particular Bass strategy.”
Once that happens, what’s on deck for Bass? What squalid swamp will he wade into next? What sordid small-time con will he cook up? We don’t hold his stock-picking powers in particularly high regard – not anymore, at least – but we’re bubbling over with confidence that this shameless bottom-feeder has a cornucopia of uniquely unethical make-a-buck stratagems left in him.
And, of course, if all else fails, he’ll always have Buenos Aires.
UPDATE, August 27: Only hours after this post went up, the Patent Trial and Appeal Board denied Bass’s first two patent challenges. The PTAB’s decision “sets a worrying precedent for Bass,” wrote Business Insider, which also noted this very illuminating response by Bass: “It should be axiomatic that people do not undertake socially valuable activity for free.” In Bass’s world, it’s all about the money.
