If you happened to tune into CNBC earlier you likely were able to catch the segment where Hedge fund manager Kyle Bass was able to give his thoughts on the economy and markets in general. Kyle Bass has been credited for making several doom and gloom predictions on the economy that ended up coming true in the long run.

When asked his opinion on the current state of the world economy he stated, ” Given my outlook on the world, I don’t know how you can be long stocks”. Bass feels that the situation in Europe is out of control. Their banking system is “infinitely” more leveraged than that of the United States when comparing the GDPs of both economies. He feels like the European bank stress tests were worthless, and that a restructuring of European debt will have to occur before things inprove.

Although Bass is long in several US investments, he is not long in the stock market. He likes US high yield debt in the form of corporate bonds, and also indirectly invests in US bank debt and US mortgages. it is rather ironic however that Bass makes these comments the same day that George Soro’s showed excitement towards the long term prospects of equities.