A Few Words with Trish Reagan

Bill Gross said he was fired from Pimco, the first time he’s publicly confirmed that he was dismissed from the firm he co-founded in 1971

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  1. Willy2 commented on Jan 16

    – Gross saw that the
    – One Mr. Ritholtz overlooks that the FED DOES NOT control (short term) interest rates !!!!! The FED CAN control those rates but the last time the FED determines those rates was in 1980 when Paul Volcker hiked those rates by 2%. After that the FED followed (!!!) the rates as set by a guy called “Mr. Market”. Or is this one of the views that are forbidden on Bloomberg or one of the many other new/”noise” channels ????
    – The fact that Yellen even mentions rate hikes clearly suggests that she sees something that would FORCE the FED to hike rates (like Volcker did in 1980).

    – Remember what happened in early february 2014 ? With the turmoil in Turkey ? The central bank of Turkey was FORCED to raise short term interest rates to DEFEND the currency ? And both the US and Turkey are running a Current Account Deficit (CAD). Turkey has a CAD of a massive ~ 7% of GDP and a foreign debt with (comapritively) short maturities. A recipe for a future disaster !!!! To be repeated in the US ?????

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