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Fund guru warns China is at risk in asset bubbles worry
Jim Armitage20 Nov 2009
Little more than a year after the collapse of Lehman Brothers smashed overblown share prices and sky-high property values, new bubbles are inflating around the world, just waiting to burst.
That is the view of Bill Gross, who runs the world's biggest fund investing in bonds at the giant Pacific Investment Management Co, and has earned a reputation as one of the savviest investors around.
In his December bulletin on the state of the financial universe, he argued that the "systemic risk" of new asset bubbles was rising daily as central banks, particularly the all-powerful US Federal Reserve, keep interest rates at record lows, making it almost free for banks to borrow money.
He later highlighted China as being particularly at risk as the country gears up for anticipated exports that are not likely to happen, because of shrunken demand for Chinese goods in the recession-bound west.
