Kyle Bass: Disappointed with JCP, Nothing to do if US Defaults [VIDEO]

Kyle Bass of Hayman Capital Management says he’s not hedged for the event of a U.S. default, because there’s nothing much you can do about it.

“All the money you’re gonna have is under your pillow, and it probably won’t be worth as much as it is today,” he said. “But I don’t think we’re going to get to that apoplectic point in the U.S.,” Bass told CNBC’s “Squawk on the Street”

Kyle Bass videos embedded below

Investors who think they will find way to continue to pay. why are you not one of them? you have $70 million of debt, any puerto rican who has enough money to get out of the country does, their pensions are turned to the tune of only 9%, they owe 32 billion to the pensions, you have a commonwealth south of florida that has no electoral votes, they don’t pay any federal income tax and we funnel $30 billion to them every day — every year. let’s hope it not every year. you look at the moody’s downgrade back in december and that’s back when their rates were 4, 4.5. now their rates are 8, 8.5. and moody’s is reaffirming their rating and not cutting them the junk when clearly they are completely junk. the difference is — when i met with greece in 2009 and 2010, they were telling me we have all these assets. any municipality or commonwealth or sovereign entity is typically asset heavy. but how many times have you ever seen a sovereign entity cede their sovereigncy, sell an asset, it would never happen. this is one of the most wild live held pieces of paper in a lot of municipal bond funds.