Former BondKing Bill Gross: The entire financial system could collapse if interest rates are not raised and huge bond-buying programmes are not scaled back, because people will stop saving.

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Famed investor Bill Gross has said ultra-loose monetary policy from central banks has caused worrying euphoria in a range of markets from stocks to crypto assets, saying investors are living in a “dreamland.”

“It’s dangerous,” the co-founder of bond giant PIMCO told the Financial Times, on the subject of monetary policy. “It’s all dreamland that’s been supported by interest rates that aren’t where they should be.”

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Gross went as far as to say that the entire financial system could collapse if interest rates are not raised and huge bond-buying programmes are not scaled back, because people will stop saving.

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“One of these days, one of these years, or one of these decades, the system will collapse, because capitalism depends on savers saving and investing,” he told the FT.

www.learcapital.com/news-blog/billgrossmarketdreamland/

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