Here's storyline from Bloomberg, "Gross Urges Investors to Take ‘Chips Off’ Table Amid Low Returns," from the former Pimco chief honcho.
“Markets are reaching the point of low return and diminishing liquidity,” Gross wrote today in his investment outlook for December. “Investors may want to begin to take some chips off the table: raise asset quality, reduce duration, and prepare for at least a halt of asset appreciation engineered upon a false central bank premise of artificial yields, QE and the trickling down of faux wealth to the working class.”
“Can a debt crisis be cured with more debt?,” Gross wrote. “I suspect future generations will be asking current policy makers the same thing that many of us now ask about public smoking, or discrimination against gays, or any other wrong turn in the process of being righted.”
What's interesting about this is early on in the Fed's QE saga, Gross was calling for more "artificial yield" creation not less. He was a big supporter for more QE, most likely because he thought it would help his huge portfolio at the time.
Gross titled his piece "How Could They?"
“How could they?,” Gross wrote. “How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt?”
If Gross doesn't have a clue, here's a couple of suggestions for him, Paul Krugman and Keynesianism.
Gross titled his piece "How Could They?"
“How could they?,” Gross wrote. “How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt?”
If Gross doesn't have a clue, here's a couple of suggestions for him, Paul Krugman and Keynesianism.
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