PIMCO's Gross warns of economic "breaking point"

Reuters ^ | 5/31/12 | Sam Forgione

[SaraJohnson]

The debt crisis and central bank policy responses have degraded the quality and value of debt markets and signal a "potential breaking point" in the global economy, PIMCO's Bill Gross, manager of the world's largest bond fund, said in his monthly letter to investors.

In his June outlook entitled "Wall Street Food Chain," Gross said stimulus policies by the Federal Reserve and the European Central Bank have led to riskier government bonds with lower value and paved the way for higher inflation.

[aynrandfreak]

This is why he went short US debt a while ago, but then had to go long again when yields kept falling. He’s right, but it may still be slightly early to short US debt.

[Grampa Dave]

"This is why he went short US debt a while ago, but then had to go long again when yields kept falling. He’s right, but it may still be slightly early to short US debt."

Gross's bond ETF, Bond, and the US inflation tied ETF, IPE, have been the two safe havens this year.

[qwertyz]

The problem in every single asset class is that price discovery is broken — thanks to galactic Central Bank intervention that can occur any time.

[Grampa Dave]

“The problem in every single asset class is that price discovery is broken — thanks to galactic Central Bank intervention that can occur any time.”

Which is why we must never fall in love with any investment, and why we own ETF’s with stop loss orders.

There is no way to calculate nor predict what hedge fund buyers/sellers will buy or sell and the investment advisors for the Opecker Princes and other super rich individuals.

[crosshairs]

It seems to me the U.S. will try to inflate it’s way out of debt.

[Freddd]

economic breaking point...
a.k.a ‘fundamental transformation’

Obama and Piven will be so proud.

Oh and Obama Occupiers of wall street.

[agere_contra]

Its OK to buy PMs though. The Galactic Overlords have been suppressing those downwards for years.