Jeffrey Gundlach, the OTHER bond king

[link01]

'Moment of Truth' Coming Soon for 2011 Investments: CEO

"What does the economy really have when you take away the stimulus and the QE2? QE2 was obviously designed to help the economy," Jeffrey Gundlach said.

 

"If it [QE2] helps the economy and it helps stocks and it helps commodities, ergo when you take it away you might go in the other direction, which I think will be the case," he added.

 

In addition, Gundlach went on to say, if lawmakers remain serious about attacking the budget deficit you will start to see an austerity program.

 

"Austerity is negative for the economy. GDP [gross domestic product] in the United States is about forty-five thousand dollars per capita and what we're really doing is living like a fifty thousand dollars per capita by printing or borrowing 10 percent of GDP essentially."

 

"All you really need to do is cut your standard of living by about 10 percent in the United States ... we need to do this soon or the compounding curve really does kick in,"  Gundlach said.

 

rest at link:

http://www.cnbc.com/id/42589181

 

 

[Myth465]

All this just makes me want to raise / hold cash.

 

I like his pair trade idea, and that is what I have done with my portfolio.