Tuesday, January 26, 2010
PIMCO gets out the Madden telestrator
Their conclusions are eerily parallel to events of the past 12 months and suggest that PIMCO’s New Normal may as well be described as the “time-tested historical reliable.” These examples tend to confirm that banking crises are followed by a deleveraging of the private sector accompanied by a substitution and escalation of government debt, which in turn slows economic growth and (PIMCO’s thesis) lowers returns on investment and financial assets. The most vulnerable countries in 2010 are shown in PIMCO’s chart “The Ring of Fire.” These red zone countries are ones with the potential for public debt to exceed 90% of GDP within a few years’ time, which would slow GDP by 1% or more. The yellow and green areas are considered to be the most conservative and potentially most solvent, with the potential for higher growth.
That's Bill Gross and his Johnny Cash "Ring of Fire chart" So Billy is staying in cash! And he wants you too.
Why doesn't he then, go in stocks? Oh that's right. He says stocks will make just 5% a year!
And leave the telestrator for football.
Because his charts, still won't make you dick!
Posted by Palmoni at 12:49 PM