4226 days ago
Pimco boss Bill Gross is one for hyperbole. The bond guru said that equities were dead as an investment class just a few weeks ago. They have zoomed ahead since. But in his latest monthly newsletter he is bang on the money. Or rather the lack of it, among Western Governments.
Starting close to home. Amazingly the UK still has an AAA credit rating. Not for long. Gross compares the UK to a drug addict who is hooked on debt and struggling to kick the habit. He notes that:
“The problem becomes if [austerity] is too quick and leads to an economic contraction, which it appears close to in the UK – An economy that doesn’t grow, ultimately can’t resolve its debt crisis.”
Well up to a point. Actually it is worse than that.
