3 September 2011 0 Comments

Debt Ceiling Deal: Pimco’s El-Erian: Debt Deal No Good for Economy

Bond Investor’s PIMCO’s Mohammed El-Arian and Chair Bill Gross are paid for making good investments, not like politicians, who are rewarded for rhetoric and giving away productive taxpayer money.

Article here and Video here (21 minutes – thoughtful and compares to other economies. Ability to service debt. Tailwinds in other economies. Our economic outlook is worse.)

“We’re out of the woods in the sense that we will avert this real threat of the technical default,” Mr. El-Erian sys. “However if you judge it in terms of the broader objectives, which is to put the country on the path of medium-term growth and medium-term fiscal viability, we may have made things worse rather than better.”

AFP News Service: US borrowing tops 100% of GDP: Treasury:The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium. ( 3 August 2011)

 

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