Bill Gross: The Fed Has Failed

Fortune ^ | 2-3-2016 | Stephen Gandel

[Citizen Zed]

The fund manager says the Fed has failed to boost the economy with low interest rates.

Bill Gross, the so-called Bond King, used his monthly letter to take the Federal Reserve to the woodshed. He took a shot at Donald Trump as well.

The Janus Capital fund manager argued in his letter that the Fed's policy of keeping interest rates low for years has failed to significantly boost the economy. He also noted that the central bank and its model for the economy have become "increasingly addled." Gross writes in the letter, "Why after several decades of 0% rates has the Japanese economy failed to respond? Why has the U.S. only averaged 2% real growth since the end of the Great Recession? How's it workin' for ya?"

...

As for Trump, Gross says "now there's an addled guy ... but who knows sometimes they succeed." The same could be said for the Fed.

[Citizen Zed]

Who does Gross support for Prez?

[bobo1]

Gee, I guess Warren Harding wasn’t such a bad president after all. Maybe we should study a little history.

[DannyTN]

The Fed’s liquidity programs are like giving an aspirin to a patient that is hemoraging. Stop the hemoraging of jobs by restoring the import tariffs.

[Vaquero]

So zero and his fed lackeys print money like supermarket coupons and the stock market love it.

They care not that the value is gone as long as the market rises. Then reality catches up and the market wonders WHY?

Meanwhile my 401ks are 201ks.

[RayChuang88]

According to the Tax Foundation, American residents and businesses held something over US$15 TRILLION in liquid assets in non-US banks--legally or not!--for tax avoidance reasons in calendar year 2014. Imagine if we change our tax laws so most of that can come back tax free--it would be such a gigantic liquidity boost to the US economy we'll see a true broad-based economic boom.