| The oil rout that has dragged down Norway’s krone since June will ultimately discipline a government that has relied too much on its petro-dollars to finance expenditure. That’s according to Kyle Bass, the founder and chief investment officer of Hayman Capital Management LP, who was in Oslo yesterday to attend a Skagen AS conference.
Scandinavia’s richest economy is now enduring the flipside of an oil reliance that fueled its economic boom over the past decade. The country has channeled oil income into the world’s biggest sovereign wealth fund in an effort to avoid overheating the economy. As part of that goal, government spending from oil revenue is limited to 4 percent of the fund. Yet thanks to growth in the fund, that percentage represents a rising pile of cash...............................................Full Article: Source
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