Debt Versus Economy

Too much can be made by each individual organization’s predictions, but there’s something disconcerting about this:

PIMCO’s Bill Gross, the manager of the world’s largest bond fund, raised his bet against U.S. government-related debt in April to 4 percent from 3 percent, according to the company’s website on Monday. …
Gross told Reuters on Friday: “Treasury yields are currently yielding substantially less than historical averages when compared with inflation. Perhaps the only justification for a further rally would be weak economic growth or a future recession that substantially lowered inflation and inflationary expectations.”

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Tommy Cranston
Tommy Cranston
10 years ago

When QE 2 ends next month there is going to be a slow, crunching decline over the next year. First in housing, then across the board.

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