[1]Remember these two charts (from here [4]and here [5]) lamenting the death of marginal utility of debt on the economy?
[6]
[7]
It seems Bill Gross is well-aware of them, as well as the tapering impact of credit growth on asset prices. His conclusion:
Gross: 3 to 4 percent credit growth can’t produce much more than 3-4 percent increases in asset prices. No more QE's? No more bull markets.
— PIMCO (@PIMCO) August 21, 2013 [8]
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Links:
[1] http://www.zerohedge.com/users/tyler-durden
[2] http://www.zerohedge.com/taxonomy_vtn/term/194
[3] http://www.zerohedge.com/taxonomy_vtn/term/195
[4] http://www.zerohedge.com/news/guest-post-analyze-fed-not-printing-enough-money
[5] http://www.zerohedge.com/news/2013-06-18/china-joins-broken-keynesian-multipler-club
[6] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/01/US%20marginal%20utility%20of%20debt.PNG
[7] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/06/Gave%202.jpg
[8] https://twitter.com/PIMCO/statuses/370175549467275264