icandoitdon

The PIMCO Maestros: Bill Gross and Mohamed El-Erian on the Economy

i've got great respect for gross and i agree with his analysis of the screw ups of the last 8 years that got us to our current hapless state. but that's where we part company.

gross acknowledges ponzi style schemes (his words) of cheap credit and lender-of-last-resort bailouts to keep our economy growing and what does he offer up? bailouts for homeowners in the form of direct subsidies and/or absurdly low interest rates and more stimulus checks to replace the contration in consumer spending that we're nowbeginning to feel.

and we're still "officially" not even in a recession. makes you wonder about the veracity of all that government data doesn't it?

there was a time when our economy was strong enough to handle economic downturns. no more, i guess. that suggest to me that we have structural flaws that the same old snake oil won't cure and aren't going away any time soon. that bodes ill for investors in u.s. securities and the u.s. dollar.

and what gross recommends isn't going to change a damn thing.