Bill Gross wants Feds to bailout PIMCO
I just read a very interesting article from “Mish’s Global Economic Trend Analysis”. The article was titled Bill Gross Wants PIMCO Bailout. The background for this article was that in a recent article, Bill Gross argued that the Feds should bail out homeowners who are affecting by the financial crunch. Gross wrote
Why is it possible to rescue corrupt S&L buccaneers in the early 1990s and provide guidance to levered Wall Street investment bankers during the 1998 LTCM crisis, yet throw 2,000,000 homeowners to the wolves in 2007? If we can bail out Chrysler, why can’t we support the American homeowner?
Sounds very generous of Gross but there is probably more than it meets the eye, as Mish’s article shows.
According to Mish’s research,
Bill Gross(’s fund) is overweight mortgages and wants a taxpayer bailout of PIMCO. Is it any wonder then that he is asking Bush to “Write some checks, bail ‘em out, and prevent a destructive housing deflation that Ben Bernanke is unable to do.”
PS. Bill Gross runs the $100b PIMCO Total Return Fund. According to Morningstar, this fund has 40% of its assets invested in mortgage-related issues.
Stumble it!
