The headline making the rounds today is:
US Is in Even Worse Shape Financially Than Greece: Gross
But I think the more interesting aspect of Bill Gross’ interview with CNBC is the bond king’s advice about which countries’ bonds are worth buying:
“Why wouldn’t an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?” he said. “It simply doesn’t make any sense.”
Should the debt problem in Greece explode into a full-blown crisis—an International Monetary Fund bailout has prevented a full-scale meltdown so far—Gross predicted that German debt, not that of the US, would be the safe-haven of choice for global investors.
As an American, I am sad that our country is so financially unsound. Too bad we didn’t follow Iceland’s example. Or that of the Founding Fathers. The bottom line – despite Geithner’s lame protestations – is that we wouldn’t be in this situation today if we had broken up the too big to fail banks.