Now, with the looming instutionalization of the debt monetization approaching just after the November elections, an interesting comment from Pimco deploring it.
Investors take note, Pimco is the 200 pound gorilla in the Treasury room sitting next to China and Japan and seems to be stirring…..the question is, if Pimco is not bullish on Fed policy and Treasuries, then what are they bullish on – emerging market debt?
From the Huffington Post:
Bill Gross: Fed Policy Is A ‘Brazen’ ‘Ponzi Scheme’
The Fed should stop meddling with the economy now, before it does more damage, say two top asset managers.
The Fed Reserve Bank’s quantitative easing program, expected to begin next week, in which the central bank will go on a spending spree to inject more money into the economy, will deal untold damage to the system it attempts to support, say Pimco managing director Bill Gross and GMO chief investment strategist Jeremy Grantham. These purchasing strategies, in which the Fed will likely buy government bonds, intending to lower interest rates and stimulate demand, don’t work, Gross and Grantham say in letters to investors: They actually make things worse.
“I ask you: Has there ever been a Ponzi scheme so brazen?” Gross says. “There has not.”
(click on the link above to continue reading the article)
