Bill Gross thinks the June unemployment data is bad

| 2 July 2009 09:45

Now, Bill Gross, the Bond King, knows that bonds go up in price when bad economic data comes out.  So, leaving aside the desire to talk one’s own book, I think Gross makes a number of good points on CNBC about the unemployment data which came out at 830 ET.  His basic point is this: no jobs and no wage growth equals no recovery.

We need to see incomes rise in order to get consumers to spend.  If the Obama Administration wants recovery, they need to do more to increase incomes and worry less about bailing out the banks.


avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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2 Comments

  1. avatar stk says:
    2 July 2009 at 15:40

    See! That’s why banks/financial institutions are pushing for wage increases and bonuses. Otherwise, no recovery! LOL.

  2. avatar LavrentiBeria says:
    2 July 2009 at 18:58

    Suspect that a future involving a resumption of vigorous consumer spending is a bit imaginative. Michael Hudson speaks to the question of what consumers are likely to do with any available funds here:

    http://www.counterpunch.org/hudson06302009.html

    Seems to me the worm has turned. The illusion of being forever financed now turns into the reality of debt peonage. And if you’re really taken with illusions, just keep believing that the ballot box will offer a remedy.