CNBC: Bond King Jeffrey Gundlach Says the National Debt is Totally out of Control

Article by Kate Rooney in CNBC financial

U.S. debt has climbed to an alarming level, according to DoubleLine CEO Jeffrey Gundlach.

“People are starting to realize that the deficit and debt are totally out of control,” Gundlach said on CNBC.

A recession or downturn could “spark” a wave of downgrades from investment grade bonds into junk bonds, he said.

“The economy is in such bad shape to withstand a downturn again,” Gundlach said. “The national debt is exploding while we’re having some of the best GDP year over year that we’ve had in recent years.”

Despite GDP growth and strong employment, if and when a recession does hit Gundlach said the U.S. economy is in no shape to handle it without drastic measures.

“The economy’s not in any kind of condition for the government to come to the rescue other than really wickedly extraordinary policies a la the ECB and the BOJ,” Gundlach said.

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