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Business Insider: Legendary Investor Bill Gross Says the Euphoria in Stocks and Crypto is a Dangerous Dreamland

November 16, 2021
Market Crash Bubble

Article by Harry Robertson in Business Insider

Famed investor Bill Gross has said ultra-loose monetary policy from central banks has caused worrying euphoria in a range of markets from stocks to crypto assets, saying investors are living in a "dreamland."

"It's dangerous," the co-founder of bond giant PIMCO told the Financial Times, on the subject of monetary policy. "It's all dreamland that's been supported by interest rates that aren't where they should be."

Gross went as far as to say that the entire financial system could collapse if interest rates are not raised and huge bond-buying programmes are not scaled back, because people will stop saving.

"One of these days, one of these years, or one of these decades, the system will collapse, because capitalism depends on savers saving and investing," he told the FT.

Gross is now retired, but manages his own money, earlier this year making millions betting against GameStop. He was once known as the "Bond King", having co-founded the $2 trillion asset manager PIMCO in 1971.

The legendary investor is one of a number of big names in markets to have raised concerns about global central banks' monetary policies.

US inflation shot up to 6.2% year-on-year in October, its highest level in 31 years, fueling concerns that the government and the Federal Reserve have overstimulated the economy.

Gross' former colleague Mohamed El-Erian said last week the Fed has made one of the worst calls in its history by dismissing inflation as transitory.

"They got stuck on the narrative and held onto it for too long," El-Erian told Bloomberg TV. "And the result of which is they're looking at inflation that is much higher than they ever expected ... much .......

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