"Stocks will drop sharply, Pimco’s CEO predicts" by Associated Press | December 28, 2009
He is just one of a VAST SEA of VOICES WARNING the SAME THING!
See: From Recession to Depression
Celente The Dollar is Finished
Related:
"David Rosenberg, chief economist at Gluskin Sheff & Associates Inc. in Toronto, one of the first to forecast the recession, said yesterday: “This is going to be the mother of all jobless recoveries"
Will the MSM listen to them? NO, of course not!
They are too busy shoveling cheerleading propaganda and insults!
Btw, if it's a "jobless" -- more like JOBLOSS -- "recovery" then it is NOTHING of the SORT!!!
NEW YORK - Homes are selling at their fastest clip in nearly three years, the unemployment rate is falling, and stocks are up 66 percent since their March lows - the best performance since the 1930s. What’s not to like?
MSM LYING?
Related: Housing market could be headed for a “double-dip’’ downturn
The unemployment rate held steady at 10 percent. It did not creep higher only because so many people stopped looking for work and are technically not counted as unemployed
As for the other one, I've choked down enough.
Plenty, says Mohamed El-Erian, chief executive of the giant bond manager Pimco. The recovery may be gaining steam but is no different than a kid who eats too much candy, he says. “We’re on a sugar high,’’ El-Erian says. “It feels good for a while but is unsustainable.’’
His point: This burst of economic activity fed by government spending and near-zero interest rates will soon peter out.
It ALREADY HAS; the fourth quarter sucked!
El-Erian oversees nearly $1 trillion in assets. What he’s saying:
Stocks will drop 10 percent in the space of three or four weeks, though he’s not predicting when.... El-Erian says people are fooling themselves if they think all the bullish data of late mean a strong recovery is in the offing.
It SURE HAS BEEN BULL!!
So he’s buying Treasurys and selling riskier stuff. His bet: Investors will get scared again and want US-guaranteed debt.
Seems like an ODD CHOICE to invest in a BANKRUPT NATIOn, but I guess if it is TAXPAYER-GUARANTEED....
Investors betting on stocks or high-yield bonds are apt to be disappointed, he says. Markets for those securities are rallying not because people like them but because they hate the puny yields of safer investments like money markets and feel they have no choice but to buy, he says. That makes the bull market as likely to last as a forced marriage, he quips. The danger: If stock and junk bond prices start falling, lots of investors are likely to bail, feeding the drop....
And if that happens, look for this.
El-Erian says many of the bulls don’t appreciate just how much the government props still under the economy are masking its weakness. Instead of focusing on the fundamentals today, he says, they’re looking to the past, expecting a quick economic rebound because that’s what’s happened before....
Of course, there are true believers in the bull who are not buying El-Erian’s line....
They must not be able to SMELL ANYTHING!!!!
--more--"
The Grand Depression of 2009
I guess they got their wish, huh?
Well, considering that it came from a newspaper that has said being poor is your fault; the financial crisis is the fault of American consumer; Boston business benefits from financial failings; financial failures are a good thing; that endless work and insecurity are a good thing; that these are the best of times; that this bear market is just like any other; that hunger is good business; that a shit pit is a good idea, I'm not surprised.
Also see: Americans Not Doing Their Fair Share For Economy
The Boston Globe Dines on Garbage
I know the felling every time I peel open a Boston Globe.
