#1 The U.K. Rests On A Pile of 'Nitroglycerine'
01-27-2010, 12:53 PM
- Join Date
- Aug 2005
Bond king Bill Gross has stern words for the U.K. in his latest commentary -- the entire nation sits on a pile of financial 'nitroglycerine'.
Stay away from U.K. bonds at all costs:
Daily Mail: 'The UK is a must to avoid. Its gilts are resting on a bed of nitroglycerine.' High debt with the potential to devalue its currency present high risks for bond investors. 'In addition, its interest rates are already artificially influenced by accounting standards that at one point last year produced long-term real interest rates of 0.5 per cent and lower.'
The warning comes a day after it was revealed that Britain had limped out of recession with an anaemic return to growth that raised fears of a second downturn.
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