Who are you listening to?

Bill Gross manages more debt securities for private investors (Pimco) than most. Much more than most. Here are his recent comments:

“Taken together (US public debt, Medicare, Medicaid, Social Security, Bailouts, Mortgage Commitments and all sorts of other liabilities), Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight.”

"That's much more than Greece, that's much more than almost any other developed country. We've got a problem and we have to get after it quickly."

"We've always wondered who will buy Treasurys" after the Federal Reserve purchases the last of its $600 billion to end the second leg of its quantitative easing program later this month, Gross said. "It's certainly not Pimco and it's probably not the bond funds of the world."

"Why wouldn't an investor buy Canada with a better balance sheet or Australia with a better balance sheet with interest rates at 1 or 2 or 3 percent higher?" he said. "It simply doesn't make any sense."

He did an interview on CNBC and it is summarized at: http://www.cnbc.com/id/43378973

If you would like to read Gross’ strategy for dealing with governments that borrow too much at the expense of savers, just go to: http://www.pimco.com/EN/Insights/Pages/BuyCheapBondswithSafeSpread.aspx

Gross said the US is in worse shape than Greece and other countries drowning in debt.

TheFundamentals has been saying, Deficits = Debt = Destruction.

But who are you listening to?

Fitch rating services says Greece stinks (our word.)  http://www.reuters.com/article/2011/05/21/us-greece-economy-fitch-idUSTRE74J41F20110521

Moodys rating services says No OPA to Greece debt: http://www.reuters.com/article/2011/06/01/us-greece-ratings-moodys-idUSTRE7506Q320110601

S and P says watch out you Greek debt holders:

http://www.reuters.com/article/2011/06/13/us-greece-ratings-sandp-idUSN1312685920110613

And Gross say the US is worse than Greece. Eeeeks.

So, who are you listening to?

You can listen to those who manage money and who understand markets and arbitrage between different investment opportunities.

Or do you listen to: Krugman? Geithner? Bernanke? Summers? Obama? Anthony Weiner? John Edwards? Ahnold? Harry and Nancy? They have adopted the Alfred E. Neuman approach to deficits and debt.



Handsome as he is wise. This new “Voice of America.”

Who are you listening to?