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.

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.”

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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