Pimco: Global Financial Crisis May Enter New Major Leg Down This Year Or Next
Bloomberg: Pimco Says World Economic Crisis Faces ‘Second Wave’
Pacific Investment Management Co., which runs the world’s biggest bond fund, said the global economy faces a “second wave” of turmoil unless governments adopt larger spending plans.
“The economic setback is still in its early stages,” Koyo Ozeki, head of Asia-Pacific credit research at Pimco’s Tokyo office, wrote in a report on the firm’s Web site. “Any further decline in housing prices could accelerate the downturn, intensifying the pernicious feedback loop and possibly leading to a second wave in the financial crisis in the next six to 12 months.”
The lack of specifics in Treasury Secretary Timothy Geithner’s financial-system rescue plan triggered a 4.9 percent drop in the Standard & Poor’s 500 Index yesterday, the steepest since President Barack Obama’s inauguration. International Monetary Fund Managing Director Dominique Strauss-Kahn said on Feb. 7 that advanced economies are in a “depression” that may get worse...
Pacific Investment Management Co., which runs the world’s biggest bond fund, said the global economy faces a “second wave” of turmoil unless governments adopt larger spending plans.
“The economic setback is still in its early stages,” Koyo Ozeki, head of Asia-Pacific credit research at Pimco’s Tokyo office, wrote in a report on the firm’s Web site. “Any further decline in housing prices could accelerate the downturn, intensifying the pernicious feedback loop and possibly leading to a second wave in the financial crisis in the next six to 12 months.”
The lack of specifics in Treasury Secretary Timothy Geithner’s financial-system rescue plan triggered a 4.9 percent drop in the Standard & Poor’s 500 Index yesterday, the steepest since President Barack Obama’s inauguration. International Monetary Fund Managing Director Dominique Strauss-Kahn said on Feb. 7 that advanced economies are in a “depression” that may get worse...