Thursday, April 8, 2010

PIMCO Disses Greece; 'It's Like the Titanic'

Greece’s dollar bonds would be unappealing even if they returned more than 7 percent, according to Richard Clarida, global strategic adviser at Pacific Investment Management Co.

“I don’t think that it would be an attractive enough yield,” said Clarida today in a Bloomberg Radio interview with Tom Keene. Greece is “sort of like the Titanic. Eighteen things went wrong, and when they go wrong at once it’s problematic,” said Clarida, whose Newport Beach, California-based firm runs the world’s largest mutual fund.

Sovereign debt continues to look like the major problem for economies globally. Greece is only act one. Why can't the problem intensify to Detroit, Los Angeles and the entire state of California?


  1. Wenzel, do you believe that what is happening to Greece is going to happen to the Municipal bond market for states like California and Michigan? Do you believe that the Federal government will come their rescue?

  2. I'll throw my 2 cents in: yes, they will come to the resuce if the opportunity presents itself. What better way for the feds to gain more power over the states? How could you reject tax increases if the money is being used to 'save ourselves'?