Among other things, Gundlach is concerned about the prospect of another recession, which he thinks will happen thanks to spending cuts and tax hikes.
We got out of the last recession thanks to the government racking up debt. The next time around, Gundlach thinks that type of fiscal policy won't be tolerated.
The real killer is going to be the next recession. And there will be one. The policymakers are trying hard to have it both ways…Ultimately as you address the fiscal situation, you're going to run the risk of a recession.