The U.K. and almost all of Europe have erred in terms of believing that austerity, fiscal austerity in the short term, is the way to produce real growth. It is not. You've got to spend money.
From Bill Gross
Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.
I would admit I'm an introvert. I don't know why introverts have to apologize.
Favouring employment versus the financial markets is a decent policy; certainly not beneficial for the currency or the gilt market, but beneficial for the people.
My clients don't pay me to feel sorry; they pay me to bring them money. I am tough, but I have a soft side.
Human nature means that institutions at some point lose their sense of mission. That sense of vulnerability drives Pimco.
Americans now know that housing prices can go down and they can go down by 10, 20, 30, and in some cases, 40 or 50 percent. We know they can go down. But five years ago, we thought they could only go up.
Bernanke and company are trying to reflate the economy with almost stated objective of inflation at 2 percent and higher in order to provide some type of safety margin for a future recession. That's where they want to go.
Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques.
It's sort of like a teeter-totter; when interest rates go down, prices go up.
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