PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality

[savalez]

One of the most influential investors in the world of finance has a message for lawmakers -- particularly conservative lawmakers -- on Capitol Hill: rejoin the real world.

In a prospectus for clients, Bill Gross, a co-founder of investment management giant PIMCO, says members' of Congress incessant focus on deficit -- and in particular, the manner in which they obsess about deficits -- is foolhardy, and a recipe for disaster. What the country needs, Gross said, is real stimulus now, and a measured return toward fiscal balance in the years ahead.

"Solutions from policymakers on the right or left, however, seem focused almost exclusively on rectifying or reducing our budget deficit as a panacea," Gross writes. "While Democrats favor tax increases and mild adjustments to entitlements, Republicans pound the table for trillions of dollars of spending cuts and an axing of Obamacare. Both, however, somewhat mystifyingly, believe that balancing the budget will magically produce 20 million jobs over the next 10 years..."

More: http://tpmdc.talkingpointsmemo.com/2011/06/pimco-founder-to-deficit-obsessed-congress-get-back-to-reality.php?ref=fpblg

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Good read.

[Dawson Leery]

1. kick

[GillesDeleuze]

2. PIMCO has obvious stake in T-Bill yields, but..

thats like saying PIMCO has a stake in "teh economy"

when PIMCO speaks, other countries and financial systems listen. id take the warning.