Pimco's Gross Has 'Lost Sleep' Over Bad Bets - WSJ.com
There is a clear and evident disconnect between rewarding savers for foregoing current rewards and the cost to those that borrow.
The Fed has printed the money for the government to borrow at low rates in the US.
In Europe, there has been the delusion of safety for Southern European bonds that is now becoming unwound.
The logic that savers expect a return for foregoing current consumption at a level to meet the demands of borrowers is seemingly far more out-of-whack than house prices during the bubble run-up in US housing.
How this will unwind and when is again like the housing bubble. Some left too soon and some didn't realize they needed to leave.
This bubble reminds one of a great battleship. It doesn't turn on a dime, but when it does turn, watch out.
Greece found this out and those in charge of US fiscal policy (e.g. Obama, et al.) have just today admitted what they don't know in their selection of someone to the Council of Economic Advisers who believes minimum wage rates have no impact on hiring.
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