Bill Gross is Shameful

By on August 26, 2007

Bill Gross, the famous (in financial circles) and ultra-compensated bond fund manager from PIMCO, has called for the Bush administration to bail out homeowners facing foreclosure. The costs of such a bail-out have been likened to the cost of the Iraq war (upwards of 1 trillion dollars). If the administration falls for Gross’ pleadings one could expect the value of the U. S. dollar index to crash through the 80 barrier. This would lead to serious price inflation and higher long-term interest rates down the road causing unforeseen miseries for the over-indebted U. S. consumer.

The motives of Mr. Gross should be in question too because it has been pointed out in various blogs that a fund he manages is heavily invested in housing related debt instruments. Shame should be thrown on Bill Gross from all angles. His wrong-headed commentary is linked here.

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