Pimco says it’s worse than the government reports. I don’t find that particularly surprising.
The standard of living has decreased for many Americans, a trend that will reverse only after the troubles in the housing market work through, Pimco Managing Director Paul McCulley said on CNBC.
“For the average American, inflation as measured by the government is understated,” McCulley said in a wide-ranging interview. “The economy is still in a heap of trouble.” Pimco is the world’s largest bond-trading firm.
Consumers also are bedeviled by soaring gasoline costs, with the national average now more than $4 a gallon for regular unleaded. While McCulley said he does believe one factor in the oil surge, the decline of the dollar, is near an end, Americans will continue to feel the pain.
It would be nice if the article actually explained why Pimco doubts the governments numbers.
