Pigs are officially flying.
Gross gets it. He got it months ago when he ordered PIMCO to dump their US holdings. Glad he driving the point home, just in time for QE3.
Then it's too late for me, since I didn't read this until Wednesday night. Although I have a degree in math, not journalism, I did go to public school so long ago that they actually taught basic grammar there. Let's try:
On Wednesday afternoon, Pimco founder Bill Gross reiterated his warning to cash out of Treasuries.
but before the crash I had put most in the only "safe" investment that they offered....US Reserves....there is no other option...
any advice?....if I could park it in a savings account, I would if they offered one...
but before the crash I had put most in the only "safe" investment that they offered....US Reserves....there is no other option...
any advice?....if I could park it in a savings account, I would if they offered one...
bump
Bill’s right, and it will be a circular collapse. Yields will go higher, as risk goes higher. Prices will fall. Remaining investors will be skinned. The rising yields will signal the spread of interest rate hikes to the rest of the economy. Markets will fall, decreasing revenues further. Layoffs of employees will further shrink revenues. Repeat. Repeat again.
The implications of US Treasury holders getting “cooked” is that Mr. Gross expects a sovereign default by the USA...or hyper inflation followed by total dollar destruction...negating the value of all dollar denominated financial assets.
Lately, I find myself often wishing that economics didn’t sound very much to me like a combination of Chinese and Greek.
For some reason the CNN article errors when I try to expand it in my IE browser so I cannot read the whole thing.
It seems to be saying that one should only get out of fixed treasuries.
Inflation Protected ones are fine because the return fluctuates with inflation.
Am I understanding this correctly?