That’s an economic analysis and dermatological condition description in 140 characters. Bill Gross, bond guru and manager at the world’s biggest investment management company PIMCO used his Twitter account to schratch some pimples from the bottom side of his Frankenstein moon.
“Bill Gross, the world’s biggest bond manager, put the matter in perspective on Twitter. “Greece was a zit, Portugal is a boil, Spain is a tumor. You can’t fix a debt crisis w/ austerity & more debt,” the Pimco manager tweeted.
Indeed, Spain renewed its commitment to austerity in the 2012 budget its government presented on Friday. Combined budget cuts and tax increases worth 27 billion euros are aimed at bringing the budget deficit down to 5.3% of GDP from 8.5% currently.
So, was the bond market unmoved by the Spanish government’s cuts? Or, as Gross implies, might the cuts be contributing to a sense that the Spanish economy will be sliding further downhill?” (further reading on Spain inAdvisorOne)
It looks as if now that the bond markets war against Greece is over, it’s Spain’s turn to be attacked…
Comments are closed.