GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Pimco's Bill Gross - The Government Shutdown Is a Category One, a Debt Default Would Be Category Five

October 02, 2013 | About:
CanadianValue

Canadian Value

120 followers
Gross thinks that the government shutdown will impact American economic growth by 0.1% a week. There is precedent for this from 1995 with the Gingrich shutdown.

The big date though is Oct. 17 and the debt ceiling. The government shutdown is a category one; failure to act on the debt ceiling would be a category five.

Gross thinks a default by the U.S. would be catastrophic as the U.S. Treasury is basically the center of the global financial world. Default would trigger meltdown worldwide in all asset classes.

Watch the video below to see where investors would flock if a default were to occur and what would happen to stocks if it does:





About the author:

Canadian Value
http://valueinvestorcanada.blogspot.com/

Rating: 3.5/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK