Econony at ‘Stall Speed’

U.S. Economy Running at ‘Stall Speed’


Pacific Investment Management Co. and BlackRock Inc., which together oversee almost $5 trillion, say the U.S. economy is stalling.

Bill Gross, who runs the world’s biggest bond fund at Pimco, and Peter Fisher, head of fixed income at BlackRock, say the Federal Reserve is preparing measures to counter the slowdown.

“We’re not looking at a recession yet, but we’re at a tipping point,” Gross said yesterday in an interview on Bloomberg Television. “We’re at what we call a stall speed in which corporate profits don’t grow, jobs aren’t created,” said Gross, who is based in Newport Beach, California.

The U.S. recovery that began two years ago has been losing momentum and there are even odds the nation will slip into a recession, according to Harvard University economics professor Martin Feldstein

Comment: Despite QE1, QE2, TARP, Auto bailouts, Cash for Clunkers, Rebates for home buyers, et cetera. Job creation is near zero. My take is that Obamacare has introduced a lot of doubt into the business world and is counter-productive to economic growth

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