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:
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:
