PIMCO's Bill Gross: Fed QE is "If Truth be Told, Somewhat of a Ponzi Scheme"

Discussion in 'Economics' started by renegade trader, Oct 28, 2010.

  1. So QE ends and rates in some cases drop down to record lows. QE 2 is about to begin and as expected rates have floated upward. Did QE actually do anything to improve the economy other than secure lines of credit? Were there any jobs created or anything to say that the QE was a success or that QE 2 is needed? I don't see it.

    As for Gross, he's buying foreign bonds. Only a fool would buy them if the dollar were to head higher. Agencies as safe? If this were the end of the bond bull and rates were headed higher, one of the last places to be are in the low yield agencies. I'd wager a fly on the wall at PIMCO says he's expecting lower yields on debt after QE2.

    I saw a Goldman report that showed the Taylor rule still declining? Anyone know if that is true?
  2. The Taylor rule calculations are subjective, in a variety of ways, since they depend on an estimate of the magnitude of the output gap.

    I actually agree with Gross on a variety of points he makes (which worries me, since I suspect he's talking his book and just wants the mkt to give him the opportunity he's looking for).
  3. Pimco should plough into junior mining companies....:D
  4. Is he indirectly endorsing the tea party?

    "Will the absence of a mosque within several hundred yards of Ground Zero solve our deficit crisis? Is Christine O’Donnell really a witch? Did Meg Whitman employ an illegal maid? Who cares! We are being conned, folks; Democrats and Republicans alike. What have you really heard from either party that addresses America’s future instead of its prurient overnight fascination with scandal? Shame on them and of course, shame on us. We’re getting what we deserve. Vote NO in November – no to both parties. Vote NO to a two-party system that trades promises for dollars and hope for power, and leaves the American people high and dry. "
  5. The world economy is 50% ponzi scheme.
  6. Larson

    Larson Guest

    Correct. The solution lies with the legislative branch now, there is nothing further the Fed can do, except preside over the demise.