The Obama administration “will produce this nation’s first trillion-dollar deficit,” predicted bond legend Bill Gross yesterday. In a strange open letter to the likely 44th president of the U.S., Gross paints a nasty picture of the U.S. economy circa 2010.
“You’ll have your tax bill and your health care bill and your housing fix, and somehow it’ll all be paid for by wealthy hedge fund managers, oil companies or, pray tell, a robust economy that’s creating good jobs at home, instead of exporting them abroad. Uh, I don’t think so, Mr. President. That’s where the ‘Yes, we can’ morphs into ‘No, we can’t.’ Not that you won’t accomplish most of that – the robust economy and the good jobs notwithstanding. It’s just that you won’t be able to pay for it.
“And what will this mean for investors… intermediate and long-term yields on government bonds have already bottomed and will gradually rise throughout your first, and perhaps second, administration. Your term will not go down in history as investor friendly.”
“You’ll have your tax bill and your health care bill and your housing fix, and somehow it’ll all be paid for by wealthy hedge fund managers, oil companies or, pray tell, a robust economy that’s creating good jobs at home, instead of exporting them abroad. Uh, I don’t think so, Mr. President. That’s where the ‘Yes, we can’ morphs into ‘No, we can’t.’ Not that you won’t accomplish most of that – the robust economy and the good jobs notwithstanding. It’s just that you won’t be able to pay for it.
“And what will this mean for investors… intermediate and long-term yields on government bonds have already bottomed and will gradually rise throughout your first, and perhaps second, administration. Your term will not go down in history as investor friendly.”
No comments:
Post a Comment