Bill Gross, the billionaire fund manager, known as “The King of Bonds,” is worried that the central banks are causing the world get into recession. In June the billionaire fund manager Bill Gross stated that the market risk was at 2008 peak. This time Bill Gross is worried about that the central banks are dragging the world into recession.
Bill Gross is the fund manager of Janus Henderson Advisors. Gross, warned about that the upcoming increases can give damages on a debt-laden global economy. He thinks that the global central banks’ progress toward policy tightening could be dangerous in terms of economic recovery.
Increasing interest rates will cause an increase in the cost of short-term debts of both companies and the individuals. According to the Federal Reserve of the United States (Fed), households in the US alone have a debt of $ 14.9 trillion while the businesses also have $ 13.7 trillion in debt.
Bill Gross states that while the governments and the US Treasury can cover the additional costs of debts, the companies and the individuals cannot do that.