Bill Gross says stock buybacks a sign of 'capitalism in reverse'

The one-time Bond King says productivity and growth will decline

Gross showing how he counts his billions

Bill Gross isn't lamenting but is worried about what it means for the economy. On Twitter, he says it's a sign of capitalism in reverse gear. "Historically companies have issued stock and invested in the real economy," he writes.

He warns that that reversal is a sign that growth and productivity will decline.

Earlier this week the Fed was out with productivity numbers for Q2 and, indeed, they have show flagging productivity.

He makes a great point but he's been hit-or-miss lately. Earlier this week he fretted about the second day of yuan devaluation when it was entirely expected.

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