Bond King Calls Theory of Unlimited Deficit Spending a 'Crackpot Idea'

Jeffrey Gundlach

So-called bond king Jeffrey Gundlach, the founder and CEO of Doubleline Capital, says Modern Monetary Theory is "complete nonsense."

Gundlach nails it.

"MMT is a crackpot idea... sounds good for a first grader," he said in an investor webcast on Tuesday. He said the theory is being used to justify a socialist program.

Gundlach added that the "ridiculous" MMT is a way of monetizing and could lead to "a significant boycott of long-term bonds"

-RW