Gross misunderstandings continue

He’s completely lost it: US Is in Even Worse Shape Financially Than Greece: Gross By Jeff Cox June 13 (CNBC) — When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told […]


Fed’s QE2 Failed to Boost U.S. Spending, Pimco’s El-Erian Says: Tom Keene By John Detrixhe and Tom Keene June 2 (Bloomberg) — The Federal Reserve’s quantitative easing policy failed to meet the “ultimate objective” of boosting employment and economic growth, said Mohamed El-Erian , chief executive officer at Pacific Investment Management Co.

Financial Repression Coming to America: El-Erian

Unfortunately, I can’t say that policy makers with as little understanding of actual monetary as he has won’t do that type of thing. (Nor can’t I say he isn’t talking position) I can say they all seem heck bent on deficit reduction, which is probably the most severe and effective form of economic repression. And […]

MERS and the mortgage mess

>    >   (email exchange) >    >   Some weekend reading – important but not urgent… >    It’s almost a certainty that complaints about foreclosures and requests for repurchases like those filed by The Fed and PIMCO against BoA, here, will increase in the coming year, increasing the likelihood of some form of congressional action to again try and […]

PIMCO on Japan

[Skip to the end] >    >   (email exchange) >    >   On Mon, Jan 11, 2010 at 9:43 AM, Wray, Randall wrote: >    >   This passage is particularly embarrassing: >   Conventional wisdom holds that the most effective way to break a liquidity trap is with >   fiscal policy, levering up and risking up the sovereign’s balance sheet to support >   aggregate demand, […]

latest from PIMCO

[Skip to the end] Some of governments’ mystery money showed up in sovereign budgets funded by debt sold to investors, but more of it showed up on central bank balance sheets as a result of check writing that required no money at all. The US govt never has nor doesn’t have dollars. It necessarily spends […]

Latest from Pimco

[Skip to the end] What If? By Paul McCulley, Managing Director, PIMCO The whole world, it seems, is wrapped around the axle about exit strategies from putatively unsustainable policies: (1) the Fed’s bloated balance sheet, with some $800 billion of excess reserves sloshing ’round the banking system, in the context of an effective zero Fed […]

PIMCO’S Gross proposes tax increase

[Skip to the end] Raise taxes with unemployment rising due to a shortage in aggregate demand? Just in case you thought the great marketer understood the monetary system: Pimco’s Gross: Maybe Obama Should RAISE Taxes By: JeeYeon Park June 3 (CNBC) — Inflation is likely three to five years down the road, and investors should […]