Rob Arnott – Lost Confidence & Stocks to Plunge 20% to 30%

Thursday, May 31, 2012
By Paul Martin

KingWorldNews.com
May 31, 2012

With continued volatility in global markets, today King World News interviewed five time Graham & Dodd Award Winner, Rob Arnott, who oversees more than $100 billion as the Founder & Chairman of Research Affiliates. When asked if the global economy and financial system is at risk of a collapse, Arnott responded, “There is certainly a danger of it accelerating into a nastier situation. What we need to do is find some resolution of the problem. The problem is spending money we don’t have. The consequence of spending money we don’t have is runaway indebtedness, which sews the seeds for a Greek style default.”

Rob Arnott continues:

“The US debt just passed 100% of GDP in February. But if you factor in state and local debt, and the GSE’s Fannie Mae and Freddie Mac, our contractual, binding debt obligations today stand at 170% of GDP. That’s the same as Greece before its default. So that’s a problem.

We’re the largest economy in the world and the world’s reserve currency, so that buys us time….

The Rest…HERE

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