A very interesting comment by Bill Gross of PIMCO, who notes the problem with low interest rates. In a nutshell, if you are a bank, why loan at 2% on a long-term project, if it just as profitable to keep your money parked with the Fed?
Read Gross’ February Investment Outlook here.
Gross is one of the smartest guys out there, especially on interest rate issues, which is a bit depressing when you consider how bearish he is. (Note that he is more positive on stocks than on bonds, just as we are.)