How does Mr. Gross know that the mortgages are going to bought for 65 cents on the dollar?
A lot assumptions are in his explanation of this, but then Mr. Gross is also a big leftie, a Barack supporter, and a pretty fair bond manager.
“Gross is also a big leftie, a Barack supporter, and a supporter of the Clintoons, Gore and John, “I was in Nam”.
Why don’t we just put Gross and Pimco in charge of the nation’s finances?
Gross is inseparable from Pimco, beholden to them and the positions he advocates are inseparable from those that would benefit his company financially.
Lately, he has been a primary cheerleader for Fed/Treasury schemes as they happen to coincide with his interests. A bailout, or even a proposal of one, results in B$ change in Gross’ personal and managed assets.
People really need to find a more objective commentator.