Salient to Investors:
PIMCO’s Bill Gross said a debt trap remains even after the European agreement, continues to avoid the debt of nations including Spain and Portugal in favor of U.S. Treasuries and mortgage securities.
Gross said both the peripherals and the core union nations have too much debt, whose marginal cost is far above nominal GDP growth in respective nations. Gross said we need some sense that the family can now get along.
Gross like Mexico and Brazil with their clean balance sheets – the are much safer than some of those peripherals. Brazil has a deficit of 2.4 percent while Mexico’s is 0.92 percent.
Read the full article at http://www.bloomberg.com/news/2012-06-29/gross-says-debt-trap-remains-after-european-agreement-tom-keene.html