Head bond vigilante brands Osborne’s strategy economic “suicide”
Remember this headline last year in the Daily Mail?
“Don’t invest in Britain: The UK economy sits ‘on a bed of nitroglycerine’, investors warned”
That was Bill Gross, as co-CEO, co-CIO of Pacific Investment Management (PIMCO) – the world’s biggest bond fund – he’s the biggest bond market vigilante out there.
He’s been a cheerleader for cutting deficits as quick as possible; he said a year ago:
“The UK is a must to avoid. Its gilts are resting on a bed of nitroglycerine.”
And in April this year, Mr Gross took a similar stance to the US bond market, but in addition to selling all his holdings he took the unusual step of selling more and went short.
Since then, growth has collapsed worldwide leading to record low yields in world bond yields. Mr Gross’s view (£) now is that it was a “mistake” to bet so heavily against the US markets.
We’ve been saying that the bond market is making it very clear we should be worried about growth and the deficit; Mr Gross’s language is always more pithy and to the point, telling Bloomberg Radio today:
“To do it [cut government spending] right now is almost suicidal.”
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http://twitter.com/matthewjorda/status/109655987610337280 matt jordan
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http://twitter.com/mikelesurf/status/109657654959415296 Mike Le-Surf
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http://twitter.com/cormacholly/status/109657893330100224 Cormac Hollingsworth
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http://twitter.com/abelardinelli/status/109658162386305025 Alex Belardinelli
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http://twitter.com/johnph7/status/109660816260866048 J P Harrison
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http://twitter.com/politicalplanet/status/109670910595825664 Political Planet
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http://splithorizons.blogspot.com/ Duncan Stott
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http://twitter.com/therightarticle/status/109685214959239169 Michael
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http://twitter.com/_ashley_wells/status/109690736731107329 Ashley Wells
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http://twitter.com/_ashley_wells/status/109691368997257216 Ashley Wells
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http://twitter.com/labour52rose/status/109695032046526464 Alex Braithwaite
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http://twitter.com/brianfmoylan/status/109696380385234944 Brian Moylan
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http://twitter.com/alfredcamp/status/109706708460380160 Alfred Camp
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http://twitter.com/elainesk/status/109771641940221952 Elaine S
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http://twitter.com/greegreece/status/109809778242486272 Tony Thomas
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http://twitter.com/tangram100/status/109812572722704384 Tangram
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http://www.order-order.com Guido Fawkes
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http://twitter.com/londoniww/status/110321652633571328 London IWW
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http://twitter.com/psychoticlynx/status/110322109707853824 Kim Blake
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