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Pacific Investment Management (PIMCO) founder and co-chief investment officer Bill Gross plays golf on the first hole at Pebble Beach Golf Links before the start of the AT&T Pebble Beach Pro-Am in Pebble Beach, California, in this February 8, 2012, file photo.
Pacific Investment Management (PIMCO) founder and co-chief investment officer Bill Gross plays golf on the first hole at Pebble Beach Golf Links before the start of the AT&T Pebble Beach Pro-Am in Pebble Beach, California, in this February 8, 2012, file photo.
(Robert Galbraith/Reuters)

Krugman, Gross spat highlights end of the financial era

A riveting public spat between two of the financial world’s biggest heavyweights – PIMCO’s Bill Gross and Princeton economist Paul Krugman – leads inexorably to the conclusion that the era of bank dominance in the global economy is coming to an end.

The debate began with Mr. Gross arguing that the Federal Reserve should tighten monetary conditions because the economy can’t function unless savers and investors are compensated much better than current interest rates provide.