Aug 11, 2010
America is a “Mickey Mouse economy” that is technically bankrupt, according to Jochen Wermuth, the Chief Investment Officer (CIO) and managing partner at Wermuth Asset Management.
“America today looks like Russia in 1998. Consumers, companies and the government are all highly indebted. America as a result is a bankrupt Mickey Mouse economy,” Wermuth told CNBC.
The comments followed news that the Fed was extending its quantitative easing program  following what the Federal Open Market Committee (FOMC) described as a fall in the pace of growth in output and employment.
The Fed has spent the past three years on a route of aggressive rate cuts and purchases of trillions in various securities but it is running out of measures it can take , Pimco’s co-CEO Mohamed El-Erian told CNBC.