Market Watch: Gundlach Says 'Massive Interest-expense Problem' Could Cause Next U.S. Financial Crisis
Article by Mark DeCambre in Market Watch
‘We have a massive interest expense problem. A massive interest expense problem, in this country, that is going to be, I believe…the next financial crisis. And so that’s what I’m more focused on. ‘
That’s Jeff Gundlach, chief investment officer and founder of DoubleLine Capital, sounding caution on what he thinks could be the next financial crisis for the market.
The money manager doesn’t see the crisis playing out as a result of arcane financial securities, but rather, simpler ones: Treasury bonds and short-term T-bills.
The CEO and CIO, speaking Wednesday on CNBC’s “Closing Bell,” said the mounting federal deficit — which ......