“It’s a global crisis from the standpoint of too much debt and delevering,” said Gross, Pimco’s co-CEO. “Greece is just the focal point for the moment, but it’s a continuing process and that’s why you see gold down, that’s why you see oil down, that’s why you see stocks down, that’s why you see risk assets down, is because they’re delevering and money is basically fleeing to the center.”
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Cory’s Chart Corner
Humans just repeat the same old themes decade after decade. Today there is far more debt to service, thus greater financial impact on spending. Ask Walmart's CEO if he's noticed any change in consumer behavior while the U.S 10 years hits 5%.
Don’t forget in April of 2007 10 year hit 5.3% and by October of 2008 they were 2%.
The US Dollar is the ‘least dirty shirt’. Hmmm…least-dirty-shirt.
Hmmm. I don’t like that. Remain liquid, remain a fence-sitter. And be on the watch for the dreaded “Hail Mary”.