Grandluxe
Registered: Aug 2006
Posts: 2459 |
10-04-12 04:23 PM
By Jeff Cox | CNBC – Tue, Oct 2, 2012 10:55 AM EDT
Stocks and bonds will be virtually worthless and gold and hard assets will be the only investments worth having unless the U.S. tames its addiction to debt and deficits, Pimco's Bill Gross said Tuesday.
In his widely followed monthly Pimco investor newsletter, the CEO of the company that runs the largest bond fund in the world paints a stark picture of the domestic financial picture.
"Unless we begin to close this gap, then the inevitable result will be that our debt/GDP ratio will continue to rise, the Fed would print money to pay for the deficiency, inflation would follow and the dollar would inevitably decline," Gross wrote. "Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the 'Ring of Fire,'" another Gross term for U.S. economic conditions.
Should that happen, the results both for investors and the U.S. economy would be catastrophic, he concluded.
Gross said. "It would be a scenario for the storybooks, that's for sure, but one which in this instance, investors would want to forget. The damage would likely be beyond repair."
http://finance.yahoo.com/news/bill-...-145551532.html
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