GROSS - Stimulus Bill Needs To Start With 'T'

During a February 5th, 2009 interview with Bloomberg TV, PIMCO managing director Bill Gross firmly expressed his belief that the U.S. government should be spending TRILLIONS, as opposed to just hundreds of billions, of dollars on stimulating the U.S economy in order to avert a 'mini Depression'.

Please find the complete 20 minute interview below:


* Bill Gross (about 9 minutes into the interview): "I don't think (the current proposed $800 Billion U.S. economic stimulus plan) is enough..there's debate back and forth and $700 and $800 Billion sounds like a lot of money (but) the problem is that there has been trillions of dollars of credit, bank capital and spending power extracted from this economy over the past 6 to 12 months...you can look at it from the standpoint of the wealth effect, you can look at it from the standpoint of lending of banks, or the shadow system, or all of that in combination, but the fact is that this economy requires support from the government, a check from the government in some form or fashion in the trillions as opposed to the hundreds of billions...I think President Obama was right, there's a potential catastrophe if Washington continues to focus on a hundred or two hundred billion dollars, we need something in the trillions."


Data Courtesy: Bloomberg + Youtube