Monday, June 13, 2011

US Is in Even Worse Shape Financially Than Greece: Gross

As stated many times, Greece will default, despite desperate denials from bankers in the Euro zone and worldwide.  The only question is how and when.

Here's the scariest part:  the world's biggest bond investor just declared US finances are in worse shape than Greece's.
When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco's Bill Gross told CNBC Monday.
Bill Gross
Getty Images

Much of the public focus is on the nation's public debt, which is $14.3 trillion. But that doesn't include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.
The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.
Taken together, Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight.

Does this all sound familiar?  Who thinks I'm crazy now?

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