2 Feb 11:48
[gsc] Bill H:
You want to join the club? http://www.zerohedge.com/news/bill-gross-why-we-are-witnessing-death-abundance-and-why-gold-becoming-default-store-value To all; the above link from Zerohedge is about the thoughts of PIMCO's Bill Gross. For years now, Bill Gross has been known as the largest manager of fixed income/bond capital in the world, I believe PIMCO now manages over $1 Trillion. Bill Gross has been quoted by all of the usual sources, Bloomberg, Reuters, CNBC etc. as an "authority" on investing and the economy. He is obviously an intelligent man living in "the mainstream" of Wall Street and thus unable to talk very far outside of the box. I decided to write this piece because Bill Gross just published this thoughtpiece that pretty much sums up the problems (and dangers)brought about by ZIRP (zero interest rate policy). Namely that bond buyers are offered little or no upside potential and vitually unlimited risk if (when) interest rates begin to rise. His theses in my opinion are all pretty much sound but he just can't make that final leap in logic, that by default, Gold is the asset class that will vacuum up and attract all capital. Of course, Mr. Gross does not get "to the bottom of it" which is the fact that "the money is bad" but he does get pretty close by pointing out that under ZIRP, and I paraphrase "nothing paper is good". I might also mention that Mr. Gross is one of the first and certainly "most respected" traditionally mainstream money manager to actually get close enough to the edge to see "off the reservation". My guess is that Mr. Gross has been spending a little time surfing the internet and stumbled on to one of those "conspiracy" websites where through common sense and logic, well...just made more sense than the(Continue reading)
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