The sovereign credit rating of the U.S. will be cut as “fiscal theater” plays out in the world’s biggest economy, according to Pacific Investment Management Co., which runs the world’s largest bond fund.
“The U.S. will get downgraded, it’s a question of when,” Scott Mather, Pimco’s head of global portfolio management, said today in Wellington. “It depends on what the end of the year looks like, but it could be fairly soon after that.”
The Congressional Budget Office has warned the U.S. economy will fall into recession if $600 billion of government spending cuts and tax increases take place at the start of 2013. Financial markets are complacent about whether the White House and Congress will reach agreement on deferring the so-called fiscal drag on the economy until later next year, Mather said.
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Despite the fact that the U.S. economy is showing some signs of recovery – albeit a slight and drawn out recovery – many people are still experiencing a great deal of economic hardship in their personal lives. Jobs are still very hard to come by, living expenses are hard to meet, and financial planning has [...]
The sovereign credit rating of the U.S. will be cut as “fiscal theater” plays out in the world’s biggest economy, according to Pacific Investment Management Co., which runs the world’s largest bond fund. “The U.S. will get downgraded, it’s a question of when,” Scott Mather, Pimco’s head of global portfolio management, said today in Wellington. [...]
With financial markets careening around the world, in January 2009 a newly inaugurated President Obama acknowledged he had to fix the problem pretty fast. “If I don’t have this done in three years,” he told NBC’s Matt Lauer, “then there’s gonna be a one-term proposition.” Today, Republicans around the country are largely campaigning on the [...]
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Despite the fact that the U.S. economy is showing some signs of recovery – albeit a slight and drawn out recovery – many people are still experiencing a great deal of economic hardship in their personal lives. Jobs are still very hard to come by, living expenses are hard to meet, and financial planning has [...]
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