Bill Gross Economy Quotations

Imperceptibly, the developed world's manufacturing base was gradually eroding and being replaced by securitized finance that destroyed itself and nearly its economies in 2008.

We're beginning to see some signs that the economy is starting to weaken in the second half of 1998, ... We're going to see 1 to 2 percent growth. If we see those numbers, then we can move down even lower below 5 1/2 percent on the long bond.

If the economy slows down, if housing moves back down, then at some point late in 2006 the Fed starts to lower rates. That's why a 10-year note yield at 4.55 percent is a decent value as opposed to overvalued.

I think ... that the economy is declining,

What it suggests this time is a 2 percent economy in 2006, as opposed to a recession.

At some point down the road, in a dynamic economy such as the U.S., we should be returning to a more normal shape. That means ultimately short rates and the front end of the curve will trade at lower yields than long rates.

As long as the stock market does what it does, and keeps going up, the wealth effect is going to transmit into a fairly strong U.S. economy and preclude the Fed from easing rates,

It is telling us that we have a slower economy ahead.

The Fed knows that the economy is in terrible shape and that they must bring down short-term rates to the level of inflation. If inflation keeps coming down, the Fed, to a certain extent, has to chase inflation.

By the time 10-year and 2-year Treasuries reach parity, as is almost the case now, the economy is typically slowing and the Fed is at or near the end of its tightening cycle, ... We are due for what appears to be a 2 percent or less Gross Domestic Product growth rate in 2006, a rate sure to stop the Fed and to induce eventual ease at some point later in the year.