Bill Gross, bond-fund super manager says that when Barack Obama becomes president (he thinks he will get elected) the budget deficit will jump through the roof … to over $1 trillion.

Bill Gross writes: “You’ve inherited an asset-based economy whose well has been pumped nearly dry with lower and lower interest rates and lender of last resort liquidity provisions that have managed to support Ponzi-style prosperity in recent years.”

Bill acknowledges that Obama inherited a mess, but with the Obama focus on higher taxes on the wealthy and oil companies and some form of universal healthcare throw into the budget the economic situation will be dire for the taxpayer. Who is going to write the checks? The taxpayer!

Obama believes in big government and big government spending programs. He is not afraid of higher taxation. Obama plans to raise the capital-gains tax for 15 percent to as much as 28 percent, allow the Bush tax cuts to expire and in effect raise the taxes on American by tens of billions.

Gross sees further deterioration in home sales and predicts home prices will be down another 10 percent or so.