Bill Gross warns Fed rate rises will ‘crack the US economy’

Former Pimco ‘bond king’ predicts central bank will be unable to go above 2.5% to 3%

“We’ve just gotten used to lower and lower rates and anything much higher will break the housing market.”

 Dubbed “the bond king” for his decades of successful investing, Gross has been railing against low policy rates for years.

“It destroys the savings function,” he said. “Meme stocks and NFTs [non fungible tokens], all of this nonsense in my mind has developed from the inability to earn a decent return in your 401k” retirement plan.

Gross, 77, still wakes up early and spends five hours a day at his Bloomberg terminal. But he has given up all thought of another comeback after his acrimonious forced departure from Pimco in 2014, a nasty 2018 divorce and a disastrous attempt to run a new fund for Janus Henderson.

FT 19 March 2022

https://www.ft.com/content/5ab01f85-bcc3-4dd7-b2ff-31195425be43

Bill Gross  says stimulus and low interest rates have created ‘dangerous’ situation  

One of these days, one of these years, or one of these decades, the system will collapse, because capitalism depends on savers saving and investing.”

https://englundmacro.blogspot.com/2021/11/2005-alan-greenspan-complained-of.html

Jag tycker det är skriande uppenbart att räntan världen över är för låg och att en större del av stimulanserna borde ske via finanspolitiken.

Rolf Englund blog 5 december 2009

https://englundmacro.blogspot.com/2014/08/skriande-uppenbart.html