Janus Capital's Bill Gross out with his latest monthly musings
Bill Gross uses illness and cures to describe the current state of the world
On Europe he talks about the German/ Greece battle and says that Draghi and the Merkel controlled Eurozone are following the saying "Feed a fever and starve a cold" with regards to growth. The fever in this case is financial bull markets being fed by 0% credit and the cold is fiscal austerity starved by balance budgets. He says the philosophy is working well for Germany, miserably for Greece and not so well for the Eurozone
The sickness analogies continue when he moves on to the US where he says that the Fed is waking up to the fact that zero percent interest rates have increasingly negative as well as positive consequences
"Low interest rates may not cure a fever - they may in fact raise a patient's temperature to life threatening status"
He also gives his view on a rate hike saying that;
"There is no statistical reason per-se for the Fed to raise rates, yet absent a major global catastrophe we are likely to get one in September"
