Bill Gross reacts to this morning's payroll data: "Much like we saw with the Depression,...

Bill Gross reacts to this morning's payroll data: "Much like we saw with the Depression, attitudes change, and so consumers and investors will now become conservative savers as opposed to spenders."

Comments

[Patient Capital]

I don't think it's related to that at all. If you use a CC and pay it off every month and have been doing so for a while, that will help your credit history.

If you physically buy everything in cash, then yeah, no electronic history would be there and so it's a bit harder for someone to give you a credit rating.

On Jul 02 11:58 AM Bill L. wrote:

> 2 years ago when I bought a car, I wasn't able to get a great rate
> because I always pay cash. I should have known the credit markets
> were about to melt down; I had bad credit because I had too much
> money. Only in a bubble does that make sense.

[youngman442002]

My father was alive in the depression..he saved everything..cans, jars, rubber bands, money, and he always paid cash for things....

[elliotz]

I hope Bill Gross is right, but personally I belive Americans have a very short memory span and in a few years if things pick up again most will beggin to spend aove their limits and it will be buisness as usual.

[Bill L.]

2 years ago when I bought a car, I wasn't able to get a great rate because I always pay cash. I should have known the credit markets were about to melt down; I had bad credit because I had too much money. Only in a bubble does that make sense.

[Vuke]

Reading the literature of the times and speaking to old timers makes one thing clear: the depression era mindset took some time to set in -and many years to dissipate.

Green shoots or not, we've a long row to hoe before any return to "prosperity".

[Jeff Nielson]

Gross is clueless.

He TALKS about U.S. consumers beginning a "generation" of saving (to repair their own personal finances), and then equates that to low, long-term GROWTH.

In FACT, what a generation of saving implies (in an economy more than 3/4 dependent on consumption) is a generation of CONTRACTION.

This, in turn, implies EITHER national default on the mounting TRILLIONS of debt, OR diluting the currency to such a massive degree that the debt-mountain can be "serviced" with grossly-diluted U.S. dollars (see www.bullionbullscanada...).

[Tom Au, CFA]

"Much like the Depression." Bill Gross nailed it. Again.