Opinion (Bill Gross, PIMCO founder and co-chief investment officer): “Bill Gross, the Pimco bond guru, said on Thursday a heavy reliance on credit has put the U.S. economy on a trajectory toward extinction, and he warned of an investor exodus from financial markets.

“The level of credit needed to spur economic growth has grown five-fold since the 1980s, said Gross, who is a founder and co-chief investment officer of Pacific Investment Management Co….

“Using a supernova as a metaphor for the U.S. financial system, Gross said the universe is expanding so rapidly now that in the far future it will end in a ‘big freeze.’ Dependence on credit for growth will produce similar results, he said.

“U.S. government, corporate, household and personal debt is now $56 trillion, a monster that needs ever increasing amounts of fuel, Gross said, calling it a ‘supernova star that expands and expands, yet, in the process begins to consume itself.’…

“The end of credit markets will begin, said Gross, when assets offer too much risk and too little return, causing an investor exodus into alternatives such as cash or real assets.”

My Comment: But exit to other markets is not a cure from the capitalist approach to life; the individualistic view of the world itself should explode like a bubble and expose the only alternative–mutual responsibility, agreement, and complement.
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