Thursday, March 10, 2011

Worse Than Spain

‘The Most Predictable Economic Crisis in History’ - By Andrew Stiles - The Corner - National Review Online: "One of those “money guys” Simpson was referring to is Bill Gross, who runs the world’s biggest mutual fund at Pacific Investment Management Co. ($237 billion in holdings). Gross announced today that he has purged that fund of all United States Treasury notes. Apparently he doesn’t think buying any more U.S. debt — $15 trillion and counting — is such a great investment, and has found more reliable places to put his money:

“We’ve moved into Brazil and Mexico and moved money, yes, at the margin into Spain, which has a better balance sheet than the United States,” Gross told CNBC. [emphasis added]

Yes, Spain. The same country that even Paul Krugman admits is “on the edge of a debt crisis.”

Even Warren Buffett — Obama’s favorite rich guy — doesn’t have enough confidence in the president’s economic stewardship to invest in long-term U.S. bonds any more."