ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397 
|
Post by ugonow on Jun 21, 2011 15:44:09 GMT -5
|
|
|
|
Post by illegalimmigrant on Jun 21, 2011 17:05:02 GMT -5
I interviewed with a big guy from PIMCO several years back. I would take anything those guys say with a huge lump of salt. They are bond traders. Their interest is not in job creation, but principal and interest repayment, even if that means crushing recessions. They hate inflation above all things and are very happy to crush economic growth if they can just so there is low inflation. If they could they would hold interests sky high and budget deficits at 0, even in the middle of the Great Depression.
|
|
ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397
|
Post by ugonow on Jun 21, 2011 17:28:23 GMT -5
Gross has been critical of government bonds recently. They have gone to the private sector from what I understand.They are a cornerstone of many a 401 and IRA.
|
|
|
|
Post by Savoir Faire-Demogague in NJ on Jun 21, 2011 18:50:04 GMT -5
I would take anything those guys say with a huge lump of salt. They are bond traders. Their interest is not in job creation, but principal and interest repayment, even if that means crushing recessions.
The horrors of forcing borrowers to repay the loans they took out. You are correct, they lend capital for business expansion and govt borrowing.
|
|
|
|
Post by floodofsantorum on Jun 21, 2011 19:39:35 GMT -5
They are bond traders.
|
|
|
|
Post by floodofsantorum on Jun 21, 2011 19:55:52 GMT -5
You are right. Deflation is horrible for an economy, but the likes of Bill Gross doesn't care. His year end bonus is at stake.
|
|
Driftr
Senior Member
Joined: Mar 10, 2011 13:08:15 GMT -5
Posts: 3,478
|
Post by Driftr on Jun 22, 2011 7:57:36 GMT -5
I interviewed with a big guy from PIMCO several years back. I would take anything those guys say with a huge lump of salt. They are bond traders. Their interest is not in job creation, but principal and interest repayment, even if that means crushing recessions. They hate inflation above all things and are very happy to crush economic growth if they can just so there is low inflation. If they could they would hold interests sky high and budget deficits at 0, even in the middle of the Great Depression. PIMCO recently went short USG-related debt. Bill advocating doing something that'll increase inflation wouldn't have anything to do with that now would it? Edit to add link: www.businessinsider.com/pimco-short-treasuries-2011-4Edit 2: to replace the word Treasuries with USG-related debt. |
|
ugonow
Senior Member
Joined: Dec 21, 2010 10:15:55 GMT -5
Posts: 3,397
|
Post by ugonow on Jun 22, 2011 8:36:34 GMT -5
CORRECTED - UPDATE 1-Bill Gross: PIMCO 'never' short US Treasuries-CNBC
inShare.0Share thisEmailPrintRelated NewsRyan pushes spending cuts as U.S. hits debt limit
Mon, May 16 2011
Pimco's Gross: "Never" short U.S. Treasuries: report
Mon, May 16 2011
Pimco's Gross: 'never' short US Treasuries-CNBC
Mon, May 16 2011
Global stocks down on Fed jitters
Fri, May 13 2011
Exclusive: Asia holds its nose, keeps buying U.S. debt
Thu, May 12 2011Analysis & OpinionU.S. munis: no disaster, but still vulnerable
Why commodities crashed
Related TopicsBonds News »
Bonds »
Markets »
Mon May 16, 2011 11:17am EDT
(Corrects first paragraph to "U.S. Treasuries" from "government debt")
* Gross tells CNBC PIMCO has never bet against Treasuries
* Says PIMCO "very underweight" U.S. Treasury market
(Adds background)
NEW YORK, May 16 (Reuters) - PIMCO's Bill Gross, manager of the world's largest bond fund, said on Monday it was a "misconception" the firm was short on U.S. Treasuries, saying the fund never actually bet against U.S. Treasuries.
Gross told CNBC the firm was "very underweight" the U.S. Treasury market and holds other bonds that are doing better than Treasury securities.
The company's website in May showed PIMCO's $240 billion Total Return fund (PTTRX.O) was short U.S. government-related debt -- this includes Treasuries, TIPS, agencies, interest rate swaps, Treasury futures and options, and FDIC-guaranteed corporate securities.
PIMCO started betting against U.S. government-related debt in April, with a short position equivalent to 3 percent of the assets in its Total Return fund, on concerns about the U.S. fiscal outlook.
The fund increased that short position to 4 percent this month as the Federal Reserve's bond purchase program neared its scheduled end in June, raising worries as to who will support the government bond market after that.
|
|
Driftr
Senior Member
Joined: Mar 10, 2011 13:08:15 GMT -5
Posts: 3,478
|
Post by Driftr on Jun 22, 2011 8:40:34 GMT -5
Great. I'll correct the word Treasuries and replace it with USG-related debt. Now, are you saying that he isn't just talking his book when he calls for more deficit spending and increased inflation?
|
|
|
|
Post by floodofsantorum on Jun 22, 2011 8:43:19 GMT -5
Look, these guys are vultures. They produce nothing of value. They just buy and sell paper. I am not knocking their right to do so, but I wouldn't take economic advice from them. Their interest is not aligned with that of the broader economy.
|
|
|
|
Post by floodofsantorum on Jun 22, 2011 8:44:17 GMT -5
He HATES inflation.
|
|
Driftr
Senior Member
Joined: Mar 10, 2011 13:08:15 GMT -5
Posts: 3,478
|
Post by Driftr on Jun 22, 2011 8:46:05 GMT -5
Then why do you think he's now calling for Governmental action that would result in more inflation? You think maybe he's positioned his company to benefit from inflation at this point? |
|
AgeOfEnlightenmentSCP
Distinguished Associate
Joined: Dec 21, 2010 11:59:07 GMT -5
Posts: 31,709
Favorite Drink: Sweetwater 420
|
Post by AgeOfEnlightenmentSCP on Jun 22, 2011 8:46:21 GMT -5
You can't be half pregnant, and you can't be halfway between individual liberty and tyranny. The level of tyranny that is acceptable is ZERO.
|
|
