The slow-moving US economy could prompt the Fed to renew liquidity programs scheduled to expire at the end of this month, Bill Gross, the founder of the world’s largest bond fund told CNBC.
“These things have all been very beneficial but let’s face it — they’re ending at the end of March,” he said. “The critical question going forward…is do we really need Uncle Sam and the check writing to continue?. I tend to think and I tend to be skeptical that we’ll require continued check writing and that some of these problems [if the economy begins to wobble] will have to come back.”
Gross also said he expects some sort of bailout for Greece and that the European economy will face tough times as well.
“Greece and Portugal and Spain and some of the lookalikes will continue to flounder in terms of yield spread and certainly in terms of economic growth,” he said.
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