http://www.pimco.com/LeftNav/Featur...t+Outlook+Bill+Gross+Mooooooo+August+2008.htm ..."For now, investors should remain in high quality assets â until â until, wellâ¦until the prospect for home prices points skyward or until the cows come home, whichever oneâs first."... Of course the investment outlook is all about talking up his own book. .."Make no mistake, the current conundrum that must be solved is: how to make the price of 120 million U.S. barns stop going down in price and then to make them go up again. That, however, is easier said than done. One of the wisest men I know has this serious but admittedly impractical solution: have the government buy one million new/unoccupied homes, blow them up, and then start all over again. Absent that, heâs not quite sure what to do, nor am I, with the exception of the next paragraphâs proposal.".... .."But absent that, lowering the cost of mortgage credit via the omnibus housing/GSE bill now placed before the Congress and the President is the best way to begin the long journey back to normalcy."... THE FREE MARKET HEROS THAT SLAMMED JAPAN FOR THEIR METHOD OF FIDDLING THE FREE MARKETS IN THE 1990 ARE NOW DO THE SAME THING THEMSLEVES. You want to fix it, be transparent, take the losses quickly, all paper assest (CDS, CDO, etc) must be tradeable on free market exchanges. Disclosure: PIMCO has purchased a tonne of FNMs bonds.