Global ‘Credit Supernova’ Turns 2013 Bull into BearSubmitted by Michael Nystrom on Mon, 02/11/2013 - 10:29
Now the news hits the mainstream...
SAN LUIS OBISPO, Calif. (MarketWatch) — Bill Gross predicting a “Credit Supernova.” Yes, that’s what the “Bond King” sees dead ahead. He knows, his firm has $2 trillion at risk of collapsing into the “Black Hole” coming after the Credit Supernova, when the Federal Reserve cheap money finally explodes in America’s face, brings down the economy, again.
Gross’s Credit Supernova metaphor is the explosive headline on his latest Pimco newsletter. So what’s a supernova? Jump over to the Space.com’s parallel universe where you’ll discover a supernova happens when a “blindingly bright star bursts into view in a corner of the night sky ... burns like a ... brilliant point of light.”
A supernova is “the explosion of a star that has reached the end of its life ... Supernovas can briefly outshine entire galaxies and radiate more energy than our sun will in its entire lifetime.”
Yes, a supernova is the “explosion of a star that has reached the end of its life.”
“End of its life?” Is America’s star economy burning out? Sure sounds like it: Gross is doing more than just hinting with his Credit Supernova metaphor. He’s predicting the collapse of the American economy and global financial markets, far worse than the 2008 Wall Street bank credit collapse, worse than the 2000 dot-com crash.
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