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U.S. Must Buy Assets to Prevent "Tsunami"

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  • #1

    U.S. Must Buy Assets to Prevent "Tsunami"

    Sept. 4 (Bloomberg) -- The U.S. government needs to start using more of its money to support markets to stem a burgeoning ``financial tsunami,'' according to Bill Gross, manager of the world's biggest bond fund.

    Banks, securities firms and hedge funds are dumping assets, driving down prices of bonds, real estate, stocks and commodities, Gross, co-chief investment officer of Newport Beach, California-based Pacific Investment Management Co., said in commentary posted on the firm's Web site today.

    ``Unchecked, it can turn a campfire into a forest fire, a mild asset bear market into a destructive financial tsunami,'' Gross said. ``If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury.''

    Rest of article


    http://www.bloomberg.com/apps/news?p...a60&refer=home
    Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. -Groucho
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  • #2
    Re: U.S. Must Buy Assets to Prevent "Tsunami"

    THIS talking up his own book is disgusting greed.

    State owned private assets, isnt that USSR policy?

    Free markets for PIMCO are only suited to him when he likes it !

    House prices are a market, a market does what a market does ! Get over it Bil Gross !

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    • #3
      Re: U.S. Must Buy Assets to Prevent "Tsunami"

      So, you're arguing let the chips fall where they may, no matter how bad it gets? As someone of a classical liberal/libertarian bent, I'm not necessarily opposed to that line of thinking, but I've never had to live through a great depression either.
      Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. -Groucho

      Comment

      • #4
        Re: U.S. Must Buy Assets to Prevent "Tsunami"

        Originally posted by Master Shake View Post
        So, you're arguing let the chips fall where they may, no matter how bad it gets? As someone of a classical liberal/libertarian bent, I'm not necessarily opposed to that line of thinking, but I've never had to live through a great depression either.
        "They" are waiting for the damn election to end, because "they" know that inflation will dig in hard once the treasury backstops the US financial system.

        Inflation? Hell, we'll just export it to Saudi and China!

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        • #5
          Re: U.S. Must Buy Assets to Prevent "Tsunami"

          .."So, you're arguing let the chips fall where they may, no matter how bad it gets?"..

          Those that take the risk, take the spoils, good or bad.

          NO Bailout
          Investors in FNM and FRE (bonds and stocks) took the risk they lose (China, Japan, Pimco). USA govt lets private business finance the mortgage market, under real free market rules.


          Bailout
          US Taxpayer loses, future generations hindered by massive govt debt. And faster dollar collapse. FNM and FRE continue on generating future liabilities.

          I use FNM and FRE as these to be the largest companies at risk, I realise that there is more.

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          • #6
            Re: U.S. Must Buy Assets to Prevent "Tsunami"

            You may be correct, or you may be advocating cutting off your nose to spite your face. Maybe some companies are "too big to fail." We really don't know the consequences because we haven't let one fail. But we do know what happens when a lot of banks fail, like they did in 1929.
            Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. -Groucho

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            • #7
              Re: U.S. Must Buy Assets to Prevent "Tsunami"

              Originally posted by icm63 View Post
              .."So, you're arguing let the chips fall where they may, no matter how bad it gets?"..

              Those that take the risk, take the spoils, good or bad.
              Yup. Institutional investors are supposed to be sophisticated and smart enough to manage the risk without too much regulation.

              They can't ask for deregulation and after that ask for government bailout, when reality proves time and time again that their "investment sophistication" is nothing else than a mixture of greed and stupidity.

              Originally posted by icm63 View Post
              NO Bailout
              Investors in FNM and FRE (bonds and stocks) took the risk they lose (China, Japan, Pimco). USA govt lets private business finance the mortgage market, under real free market rules.
              Yup. Nobody i stalking about balling out the Average Joe or the Average Alberto who was conned into signing up for a mortgage with obscene (adjustable ) rate.

              Read here what they did:
              http://www.metrosantacruz.com/metro-...over-0836.html

              And now they want a bailout ??? That's funny!!!



              Originally posted by icm63 View Post
              I use FNM and FRE as these to be the largest companies at risk, I realise that there is more.
              I guess there are also a lot of hedge funds an private equity firms involved. Good riddance!

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