Jeffrey Gundlach, the star bond fund manager who proclaimed in 2007 that subprime mortgages were going to become an unmitigated disaster, is not optimistic now either.

But rather than fearing runaway inflation, as many Americans do, Gundlach is concerned that the nation has at least a couple of years of deflation ahead and perhaps a double dip recession.  Speaking at the Morningstar annual conference in Chicago he said the country is burdened by debt levels so high that they cannot go on much longer without threatening the country.