In his latest investment outlook, PIMCO bond guru Bill Gross offers a sobering take on the global debt crisis, saying it could take decades for economies and markets to return to normal. But, he says that in a world of subpar investment options, the U.S. is currently the best place to look. “What global investors, […]
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Tag Archives: debt
The 90% Debt/GDP Threshold: Reality or Myth?
January 12, 2012 
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Over the past year-and-a-half, many prominent strategists have cited the research of Carmen Reinhart and Kenneth Rogoff in contending that the U.S. will be in big trouble if its debt-to-GDP ratio climbs past 90%. But Robert Huebscher, the founder of Advisor Perspectives, says they are misreading Reinhart and Rogoff’s research. The problem, Huebscher says, is […]
Read moreKrugman on Why Politicians Don’t Get Debt
January 4, 2012 0 Comments
For much of 2011, politicians have been squabbling over how to pare the U.S.’s deficit. But Paul Krugman says they’re misguided in doing so. “This misplaced focus said a lot about our political culture, in particular about how disconnected Congress is from the suffering of ordinary Americans,” the Nobel laureate economist writes in his New […]
Read moreSonders: Want Job Growth? Provide Regulatory Clarity
September 12, 2011 0 Comments
Charles Schwab Chief Investment Strategist Liz Ann Sonders sees weak growth for the U.S. for “quite some time” — though she doesn’t see another recession on the horizon — and says eliminating regulatory uncertainty is a key to stabilizing the business climate and creating jobs. “Slow growth at best,” Sonders says of her expectations for […]
Read moreKrugman: We Need a Short-Term Fix
August 16, 2011 0 Comments
While many say the U.S. should be focusing on long-term solutions to its debt problems, Nobel Prize-winning Economist Paul Krugman says that a more pressing need is a short-term fix for its economic engine. “When you’re bleeding profusely from an open wound, you want a doctor who binds that wound up, not a doctor who […]
Read moreSiegel Sees “Irresistible Values”; Says This Isn’t Another 2008
August 15, 2011 0 Comments
Author and Wharton Professor Jeremy Siegel says the current low valuations in the market make it unlikely that we’ll see another decade of meager returns for stocks, like we did after the tech bubble burst in 2000. ”It’s certainly scary in the short run, but I think there are really irresistible values here in the […]
Read moreSonders on the Impact of a U.S. Downgrade
August 3, 2011 0 Comments
Charles Schwab’s Liz Ann Sonders says there’s still a possibility that the U.S. could have its credit rating downgraded, but also says the implications of a downgrade may not be as dire as people think. Sonders notes that some countries, like Japan, have gone through a downgrade without seeing big rate hikes. And, if there […]
Read moreCompanies that Would Make Congress Jealous
August 2, 2011 0 Comments
In his latest article for Nasdaq.com, Validea CEO John Reese takes a look at companies that have done what Congress has had struggled to do — rein in spending. “While a myriad of companies went into the financial crisis of 2008 leveraged to the hilt, many have used the last three years to chip away […]
Read moreSiegel and Shiller Debate the Debt Conundrum
July 28, 2011 0 Comments
How should the U.S. go about cleaning up its debt mess? In a recent interview with MarketWatch, two of the world’s top economic minds — Professor Jeremy Siegel of Wharton and Professor Robert Shiller of Yale — offered their takes. Siegel says Medicare is the big issue the government needs to address, and he doesn’t […]
Read moreThe Problems with Debt-to-GDP Ratios
July 22, 2011 0 Comments
U.S. debt is climbing toward 100% of GDP — a figure that many are seeing as magic number that portends doom. But Yale Economist Robert Shiller says that logic is flawed — very flawed. “Could it be that people think that a country becomes insolvent when its debt exceeds 100% of GDP?” Shiller writes for […]
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