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Pimco’s Gross Says Global Economy, Markets at Risk in 2012

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the global economy and financial markets are at risk in 2012, boosting the appeal of U.S. Treasuries.

“Banks should be eight-to-one or nine-to-one in terms of leverage,” Gross said in a Bloomberg Television interview with Trish Regan. “Right now, the system is an 18-times to 20-times overleveraged system, and that’s producing the risk in terms of tipping one way or the other.”