Bill Gross PIMCO Investment Outlook February 2008 Letter I couldn't agree more Bill. "Because demand in the form of consumption has been artificially and fictitiously stimulated in recent years by financial engineering run amuck, there is a legitimate question as to whether its black hole imploding destructiveness can be totally countered with another dose of lower yields and deficit spending packages." http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+February+2008.htm
Doesn't Alan Greenspan work for PIMCO now? Isn't that insulting to his colleague? Something must be going on behind the scenes.
Greenspan was hired by that hedge fund guy who made billions by shorting the subprime market. Sorry can't recall his name or the name of the fund.
I've posted these links in other forums tonight talking about forcasting and recessions but will put them here as well. My point is simply this, despite his success in running a large fund, his ability to forecast the economy and stockmarket seems poor and the derivatives articles questions his accuracy in making basic calculations. Thus, why do people put such great faith in his forecats? http://www.ft.com/cms/s/0/80f0e842-ce0c-11dc-9e4e-000077b07658.html http://www.cxoadvisory.com/gurus/Gross/
Just a thought on your above article: "The writer is chief executive of the International Swaps and Derivatives Association" Kind of like the Toll Brothers CEO saying housing hit a bottom more than 6 months ago?
talking his book...when bond yields are about to reverse in regards to the aggressiveness of the FED.
I would say they put more faith in his contacts and inside knowledge than in his forecasts... <img src="http://www.enflow.com/p.gif">
Very fair point and something I had noticed, yes he may have a vested interest BUT, I should have elaborated more as in the other thread. My point was simply this; various people are presenting arguments in various articles - fine - posters to these boards then cite these articles to back up arguments - fine - but do they not do their own research to check if the facts being presented are correct? Is one right or wrong? Are they both wrong? The truth may lie somewhere in the middle but a simple checking of facts points to one of these two men being much more right than the other, regardless of their position.