WELCOME TO THE PARANORMAL: Bill Gross Warns Of Financial Market Implosion And The End Of Economic Life As We Know It
Joe Weisenthal
BusinessInsider.com
Jan. 4, 2012
Bill Gross starts 2012 with a bang in a new note titled “Towards The Paranormal”, with “paranormal” being an international successor to PIMCO’s famous ‘new normal’ descriptor.
Gross’ letter is very gloomy.
The world has too much debt, too little trust, and is vulnerable towards total collapse.
He writes:
How many ways can you say “it’s different this time?” There’s “abnormal,” “subnormal,” “paranormal” and of course “new normal.” Mohamed El-Erian’s awakening phrase of several years past has virtually been adopted into the lexicon these days, but now it has an almost antiquated vapor to it that reflected calmer seas in 2011 as opposed to the possibility of a perfect storm in 2012. The New Normal as PIMCO and other economists would describe it was a world of muted western growth, high unemployment and relatively orderly delevering. Now we appear to be morphing into a world with much fatter tails, bordering on bimodal. It’s as if the Earth now has two moons instead of one and both are growing in size like a cancerous tumor that may threaten the financial tides, oceans and economic life as we have known it for the past half century. Welcome to 2012.
The Old/New Normal
The Rest...HERE
