Bill Gross Irresponsibly Calls for More Stimulus

PIMCO's Bill Gross, who has been dubbed the "Bond King," isn't convinced Federal Reserve Chairman Ben Bernanke has it right when he said last week when testifying before Capitol Hill that ther is "increasing evidence that a self sustaining recovery in consumer and business spending may be taking hold."
Rather he sees the American economy as being unsustainable, and incredibly, rather than calling for the government to get its financial house in order by starting to shrink itself, he's calling for even more stimulus going forward.

Gross says in an interview, "I suspect that it's not as self-sustaining as they think. I suspect at we're not standing firmly on our own two legs and that ultimately we're going to continue to need some stimulation from the government."

"Basically the U.S. is not saving enough money to replace its own capital from the standpoint of depreciation and potential investment," added Gross, who said the greatest long-term threat to the American economy is the negative net savings rate of 1-2 percent.




Source