Gross on PIMCO’s Fannie Trade

Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., talks with Bloomberg’s Tom Keene and Pimm Fox about the impact of the U.S. government’s takeover of Fannie Mae and Freddie Mac on Pimco’s business and mortgage debt, and the outlook for Federal Reserve monetary policy.

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Gross

00:01 Impact of Fannie, Freddie takeover on Pimco
02:18 Effect on housing market; foreign investors
04:24 Reasons behind takeover; Fed monetary policy
06:18 Outlook for U.S. mortgage market
Running time 07:36

Last Updated: September 7, 2008 21:21 EDT

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Discussions found on the web:
  1. Simon commented on Sep 9

    That smile says it all!

  2. pablo commented on Sep 9

    I hope more hardworking guys like him , get help from the govt ! But , what really disgusts me , is all these workouts on subprime mortgages . These people are making out like bandits . ITS NOT FAIR!!!

    i am using lowest form of wit.

  3. david commented on Sep 9

    This is so sad. This is the end of a great economy. The treasury will fail. They had so many other ways to go. But to nationalise the morgage industry is the wrong way. This is the quick fix, no pain plan. The problem is the pain will be more down the line. We will have to socialize the country to live. We lose our freedom. We sould take the pain.F— Pimco.

  4. Jim Haygood commented on Sep 9

    Lookit that cracked smile — Billy looks like a sodbuster who just won a giant stuffed panda for his sister in the mechanical duck shoot at the county fair.

    Good on ya, Billy. We PAID for that panda.

  5. Tom commented on Sep 9

    i thought this country was founded on fighting taxation without representation. Well, don’t these bailouts amount to the same thing? When “they” profit, they keep it, when “they” lose – we get the debt. How’s that work?

  6. John(2) commented on Sep 9

    What’s with all this Gross hate? He’s an investment manager, he makes money for himself and others by making good decisions, this was a hell of a good decision. That’s the way the system works in this country. You may not like the system but don’t blame Gross who was just doing his job and doing it a hell of lot better than a lot of other people from O’Neill to Miller who were paid vast sums of money and completely screwed up.

  7. anon commented on Sep 9

    didn’t they hire greenspan after he retired? it seems they got a good return on that investment…

  8. Mind commented on Sep 9

    And we were laughing down our noses when the Brits took over Northern Rock.

  9. AC commented on Sep 9

    Does anyone think Billy blows dry his hair?

  10. me commented on Sep 9

    “What’s with all this Gross hate?”

    And PIMPco is your idea of free markets?

    “That’s the way the system works in this country. You may not like the system but don’t blame Gross”

    That is the point, he is what is WRONG with the system. Its the system is the lamest excuse for the status quo and why anyone without inside information would invest in the US markets escapes me.

  11. gaius marius commented on Sep 9

    i prefer jamie galbriath’s word for what pimco, the fed and treasury have effected with the FNM/FRE takeover: predation.

    billions of public revenues transferred to predatory private interests with the help of well-placed inside agents. on the way up, FNM/FRE greased the money machine of securitization, irresponsibly leveraging quasi-public cost of borrowing to enrich the predators. on the way down, treasury is again enriching the predator, transferring the inevitable losses onto the taxpayer.

    this is not capitalism. this is not democracy. this is the predator state.

  12. Mark E Hoffer commented on Sep 9

    maybe we’ll all see this a little more clearly now:

    Karl Marx’s “10 Planks” to seize power and destroy freedom:

    Abolition of Property in Land and Application of all Rents of Land to Public Purpose.

    A Heavy Progressive or Graduated Income Tax.

    Abolition of All Rights of Inheritance.

    Confiscation of the Property of All Emigrants and Rebels.

    Centralization of Credit in the Hands of the State, by Means of a National Bank with State Capital and an Exclusive Monopoly.

    Centralization of the Means of Communication and Transport in the Hands of the State.

    Extension of Factories and Instruments of Production Owned by the State, the Bringing Into Cultivation of Waste Lands, and the Improvement of the Soil Generally in Accordance with a Common Plan.

    Equal Liability of All to Labor. Establishment of Industrial Armies, Especially for Agriculture.

    Combination of Agriculture with Manufacturing Industries; Gradual Abolition of the Distinction Between Town and Country by a More Equable Distribution of the Population over the Country.

    Free Education for All Children in Public Schools. Abolition of Children’s Factory Labor in it’s Present Form. Combination of Education with Industrial Production.

    Numero Uno, finally acheived, to join their other successes.

  13. Douglas Watts commented on Sep 9

    Free Education for All Children in Public Schools. Abolition of Children’s Factory Labor in its Present Form.

    Heavens, that would be a terrible for modern civilization.

  14. Mark E Hoffer commented on Sep 9

    Douglas,

    check the #’s where you live, though, here, in Pennsylvania, state-wide, ~18% of our population Fails to achive a H.S. Diploma. Even in our Wealthiest counties, median ~U$D 81 000(2005)(i.e. Chester, outside of Philadelphia) the # is above 10%.

    Again, state-wide, ~56% of our population maxes out their “educational acheivement” with a H.S. Diploma. Chester county= ~37%

    You note: “modern civilization”, take a peek around, you think we’re maxing out our potential?

    Our current K-12 system hasn’t, materially, changed since it was developed ~100 years ago to feed “Workers” into the mill. Now, it feeds “Consumers” into the mall(maul).

    See it, our current schooling system, producing Critical Thinkers?, or Prozac addicts?

    You’ve got a good mind, put down the blinkers, see the Horizons, and help out.

    “Perhaps the greatest of school’s illusions is that the institution was launched by a group of kindly men and women who wanted to help the children of ordinary families—to level the playing field, so to speak.”
    http://www.johntaylorgatto.com/

  15. johnnyvee commented on Sep 9

    I think Gross is the Paul Rever(sp)for the Fed. The fed is coming. The fed is coming… If Gross says the fed should do something its already baked in the cake that it will do it because he is an insider and knows it.

  16. Jeff M. commented on Sep 9

    @Mark E Hoffer: Good points all, but I don’t think you can put ALL of the onus and blame on any schooling “system” when there are several other cultural forces at work as well. My brother in law started a pretty innovative, successful charter school here in Minny and the stories he tells me about the plethora of kids who come to school simply not ready to learn is astounding. Much of this falls on parenting and the family environment as well, no? Parents can’t just dump their kids at school and expect them to do the parenting for them. I really think the problem is much deeper and far more multi-factored than just pointing the finger at our “free” public school system.

  17. David Davenport commented on Sep 9

    These failing students with bad parents — are we permitted to ask about their ethnicity?

  18. Scott in Chicago commented on Sep 9

    Whew! I was concerned Bill Gross would no longer be able to afford face lifts and chemical peels.

    What a sham. At the risk of being indelicate, f*^k Bill Gross, and the dermatologist he rode in on….

  19. david commented on Sep 9

    Only in America could The Bush Admistration nationalise the morgage industry,so Nancy Palocie can have a say in who gets a home loan.

  20. Mark E Hoffer commented on Sep 9

    Jeff M.

    with this: “I really think the problem is much deeper and far more multi-factored than just pointing the finger at our “free” public school system.” of course it is, note, though, I was just responding to Douglas’ comment.

    and, this: “Parents can’t just dump their kids at school and expect them to do the parenting for them.” Of course that would be non-sense, though, it isn’t stopping the Politicians from offering ever more “Gov’t”-funded programs that aim to do just that.
    From DayCare and pre-School to longer school days and longer school years.

    We need less Schooling and more Learning.

    Again, of course, the problems we face have other facets, but, the idea that “Free Public Schooling” is a panacea is a Fraud, and a Failure, for the People, on par with the Federal Reserve.

  21. Ritchie commented on Sep 9

    David Davenport: “These failing students with bad parents — are we permitted to ask about their ethnicity?”

    Yes, of course.

    But, more importantly, you are permitted to ask if more of them are in red states or blue states.

  22. leftback commented on Sep 9

    He made money. It’s his job.

  23. max commented on Sep 9

    wicked smile with little $ signs in his eyes. :)

  24. me commented on Sep 10

    “He made money. It’s his job.”

    I wish I could make money whining and screwing the taxpayers.

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