PIMCO's co-CIO Bill Gross was on Bloomberg to discuss his views on the fiscal cliff with Betty Liu. Here is what he said:
-- His advice to the president: Resolving the fiscal cliff and fixing the debt ceiling at the same time as going over the cliff will not help anyone as it will lead to a recession as well as U.S. debt downgrade.
-- Orient the policy to be directed to investment spending rather then consumption spending to help the economy; spend on infrastructure.
-- Given that entitlements spending will need to come down and taxes will need to go up, let's focus on productive spending from the government to boost the economy
Credit and source: www.bloomberg.com, Bloomberg
Here is the video:
-- His advice to the president: Resolving the fiscal cliff and fixing the debt ceiling at the same time as going over the cliff will not help anyone as it will lead to a recession as well as U.S. debt downgrade.
-- Orient the policy to be directed to investment spending rather then consumption spending to help the economy; spend on infrastructure.
-- Given that entitlements spending will need to come down and taxes will need to go up, let's focus on productive spending from the government to boost the economy
Credit and source: www.bloomberg.com, Bloomberg
Here is the video:
