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Bill Gross channels Paul Krugman? "You've got to spend money," says the Bond King, arguing...

Bill Gross channels Paul Krugman? "You've got to spend money," says the Bond King, arguing Europe and the U.K. have erred by pursuing fiscal austerity. "Bond investors want growth much like equity investors," he says. If austerity leads to recession, credit spreads will widen whether or not a country is able to print its own money. As of the end of March, Gross' BOND ETF had one-third of its assets in Treasurys, the highest level since July.
Comments (6)
  • Anyone who echoes discredited Krugman's nonsense instantly loses credibility.
    22 Apr 2013, 11:42 AM Reply Like
  • How's a wise investor going to fight the trend? It would be irrational. Never fight the Fed.
    22 Apr 2013, 11:47 AM Reply Like
  • Gross is right in my opinion, as is Krugman on this particular subject. Deflation and stagnate growth (think Japan over the last 20 years) is the biggest risk to most developed nations in the near and intermediate term.
    22 Apr 2013, 11:48 AM Reply Like
  • I think Gross should have said "You have to spend money wisely".....Govt spending is up more than $1T annually since Obama took office, it is having little effect as it was spent on things that do not foster growth......AKA, we blew our wad.
    22 Apr 2013, 12:02 PM Reply Like
  • Bret, I am not sure how you calculate that spending is up $1T annually since 2007, when our deficit is projected to be less than $800B this year. You are correct that the original 2009 stimulus did not necessarily stimulate sustained growth, however it was intentionally not designed to do that. It was designed to get funds into the economy as quickly as possible in order to stem the economic plunge that the country was in the midst of at the time. The sustainable growth stimulus has been proposed many times over the last couple of years and each time those efforts were blocked by the House of Representatives.
    23 Apr 2013, 11:41 AM Reply Like
  • Yeah, those awful Republicans again blocking the good sense from the saintly Senate and the Nobel Peace Prize winner in the White House. They are an abomination, right? LOL
    25 Apr 2013, 09:53 AM Reply Like
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