Bond king Jeff Gundlach hates just about everything these days.
The elite investor thinks the spike in oil prices is unsustainable, U.S. stocks have little room left to rise and junk bonds will get trashed by a wave of energy defaults.
But the billionaire founder and CEO of DoubleLine Capital saves his darkest warning for fans of negative interest rates.
“Negative rates are really bad,” Gundlach cautioned during a webcast on Tuesday afternoon. “It’s going to backfire like an old Model-T.”
Central bankers in Europe and Japan have embraced negative rates as a way to stimulate growth — despite the fact that little is known about the consequences because they’ve never been tried on a grand scale before. Even the U.S. Federal Reserve recently sounded open to the idea, in a crisis at least.
But Gundlach has a message for the Fed: “We don’t want negative interest rates,” he said, adding that it would send “banks crashing and stock markets tumbling.”
http://money.cnn.com/2016/03/09/investing/gundlach-bond-king-negative-rates-stocks-oil/?iid=EL
2 replies on “Billionaire to central banks: We don’t want negative rates”
All these games being played by the banks and governments around the globe all just so they don’t have to pay living wages to the real producers of wealth what they deserve and tax the uber rich more to pay for the maintenance of the commons. What greedy idiots. They’re all standing hip deep in the river dying of thirst not knowing what to do.
Forgive them father for they know not what they do…