Bill Gross: "No QE 3"

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Wed, 06/08/2011 - 17:17 | 1352475 camaro68ss
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No QE3, but...but... i need my fix man. (scraching arms)

Wed, 06/08/2011 - 17:31 | 1352541 DutchZeroPrinter
DutchZeroPrinter's picture

It won't be bullish for UST, not even in the short term. Dollar and UST are no safe haven anymore. When the economy comes crashing through the floor, creditor nations will get out as fast as possible.

Wed, 06/08/2011 - 17:32 | 1352554 HpDeskjet
HpDeskjet's picture

To what? There is no market liquid/big enough to absorb that amount of money (yet)... If US continues down the current fiscal path, for sure the $ will be destroyed, but this point won't be reached for longer than most people think 

Wed, 06/08/2011 - 17:40 | 1352588 hack3434
hack3434's picture

Common misconception...Captical can and will be lost. The real question is who and how fast they can outrun the others. 

Thu, 06/09/2011 - 08:32 | 1354038 GetZeeGold
GetZeeGold's picture


Is it just me.....or do I not detect a whiff of ozone and a hint of panic?


Wed, 06/08/2011 - 19:57 | 1353000 unum mountaineer
unum mountaineer's picture

crack is whack Cam

Chapelle's Tyrone biggums came to mind

Wed, 06/08/2011 - 17:44 | 1352592 I think I need ...
I think I need to buy a gun's picture

aka gold revaluation

Thu, 06/09/2011 - 02:34 | 1353810 Michael
Michael's picture

Stop it, stop it, stop the speculation right now on whether or not there is going to be QE3. Jut stop it! They made a below 3% yield for a cushion on the 10 year you fucking morons. There absolutely will be QE3 when the 10 year moves back to it's nominal drop dead value of 3.5%, maybe 3.75% and panic sets in at that point.

The world will come to an end if there is no QE3. There will be QE3 come hell or high water. Can I make it any more clearer for you fucking morons?

Thu, 06/09/2011 - 08:29 | 1354040 GetZeeGold
GetZeeGold's picture


I believe you've made that perfectly ucking clear.


Wed, 06/08/2011 - 21:12 | 1353206 Re-Discovery
Re-Discovery's picture

Gross believes in Financial Repression theory which is a variant of loose monetary policy not technically QE.  he believes Fed will target inflation at 4-5 % for a long period of time to reduce debt.

He is making "No QE" call to tank bonds when Fed leaves as a buyer (prices tank) and validates his anti-treasury stance.

Under financial repression theory over the longer term, the TBTF step in to buy bonds when Fed exits because the Fed forces them to.

Wed, 06/08/2011 - 23:36 | 1353563 trav7777
trav7777's picture

Dunno how the USG is going to fund...not with sustained $2T deficits, that is.

The wars can't end because the oil supply is dwindling.

The Fed will print when the government puts a gun to their head

Thu, 06/09/2011 - 03:10 | 1353835 BorisTheBlade
BorisTheBlade's picture

Maybe Gross is right, QE sounds bad already. Time to rebrand it, then run for a couple more iterations.

Wed, 06/08/2011 - 17:18 | 1352480 Boston
Boston's picture

No QE3?


.....for Treasuries.


Wed, 06/08/2011 - 17:33 | 1352556 Dr. No
Dr. No's picture

Please explain.  I would expect the removal of $700B in demand to put pressure on prices.

Wed, 06/08/2011 - 17:45 | 1352594 Hugh G Rection
Hugh G Rection's picture

No QE3


Either they're rebranding under a new name, or its straight to QE4

Wed, 06/08/2011 - 17:55 | 1352641 Conrad Murray
Conrad Murray's picture

Who needs QEanything when you have a Marxist president, a neutered and captured Congress, and a complacent, if not outright treasonous, judiciary. This is end game for America. October 26, 2001 Lady Liberty was gutted like a hog. October 3, 2008 the markets were sacrificed to the demons of central planning.

Either the tree gets watered, or it will surely die.

Wed, 06/08/2011 - 18:53 | 1352844 Hugh G Rection
Hugh G Rection's picture

I agree, but you completely left out the Federal Reserve and its cabal of international banksters.  America started to die after the federal reserve act in 1913, the monetary terrorists have been bleeding us damn near a hundred years.

Thu, 06/09/2011 - 09:06 | 1354102 WonderDawg
WonderDawg's picture

 "a neutered and captured Congress"

You're not helping matters by buying into and perpetuating the euphamisms so prevalently used by the MSM. "Captured"? Call it what it is. Corrupt. Bought and paid for. Owned. Congress is corrupt and on the take. Captured sounds like some kind of kids game. Call a spade a spade. The motherfuckers are corrupt.


Thu, 06/09/2011 - 12:30 | 1354773 el Gallinazo
el Gallinazo's picture

Comrade, maybe it's time for you to learn the difference between Marxist and fascist. I am not a big fan of either one, but it's nice not to flaunt your ignorance. Obama talked like a moderate liberal running for election, but his policies, like Bush's, both foreign and domestic, have been totally fascists. Marxists do not hand the government over to the giant corporations.

Thu, 06/09/2011 - 13:34 | 1354977 Conrad Murray
Conrad Murray's picture

Fascism/Marxism, merely different sides of the socialist spectrum.

Obama most certainly did not talk like a moderate. He spoke of spreading the wealth around, and having energy rates necessarily skyrocket under his administration(which he most certainly followed up on by bringing Steven Chu aboard as US Energy Secretary, who said, "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe") all while attending a church of pure hate( ).

The only people that thought he was a moderate were those not paying attention. The people who parrot whatever the talking heads tell them to, such as the lie that he is eloquent: He has a teleprompter and nothing more. He doesn't know how many states there are( ), and he doesn't even know what year it is( ). These are the same idiots that voted for him out of spite for Bush or to prove they are "post-racial", whatever the hell that is.

I'll give you Bush, but if Obama were a fascist he would be more homeland(USA, not Kenya) orientated. He wouldn't bow down to leaders all over the world apologizing for the past, he would firm up. Sure, there is plenty of corporatism left over from previous administrations, and Barry Soetoro isn't helping much, but Barack Hussein Obama wants global communism. He is a Marxist through and through.

In any case, if you want to quibble over terms instead of focusing on the issues, how about we agree to refer to all of it as Statism or Authoritarianism? Or maybe delusional mass-murder inducing bullshit...

Thu, 06/09/2011 - 14:28 | 1355158 GoinFawr
GoinFawr's picture

Oh, so it`s `quibbling` if you get called on misnoming one political ideology because you erroneously superimposed it onto its polar opposite? That is propagating the sort of misinformation that anyone should take issue with.

I recommend you update your lexicon if you want to be taken seriously.

Wed, 06/08/2011 - 19:32 | 1352938 Fur Trader
Fur Trader's picture

That's truth; thanks to ZH, 'QE3' will be called anything but that.    We should start a tracking sub-blog pool here on what it will be known as.

Wed, 06/08/2011 - 20:18 | 1353053 Hugh G Rection
Hugh G Rection's picture

How about Qualitative Fleecing?

Thu, 06/09/2011 - 13:07 | 1354898 Nathan Muir
Nathan Muir's picture

Certainly more appropriate! Although "money printing" rolls off the tongue nicely and sums it up perfectly.

Wed, 06/08/2011 - 23:54 | 1353619 Rational Psycho
Rational Psycho's picture

Certainly some acronym that means the opposite of what the program does. How about Highly Effective Liquidity Purchases Under Soveriegn Authority, HELP USA.

Wed, 06/08/2011 - 18:42 | 1352795 Bonesetter Brown
Bonesetter Brown's picture

See Irving Fisher

Wed, 06/08/2011 - 19:08 | 1352887 Boston
Boston's picture

One explanation is based on studying what happened the last time QE ended in the spring of 2010. Counter-intuitively, Treasury prices soared, taking the 10 year down to under 2.4% by early fall 2010.

There is no overwhelming reason why Treasuries would behave differently this time.  In fact, this argument is already supported by the "surprising" (hello Bill Gross!) Treasury rally we've seen over the last six weeks.

(BTW, I don't comment here often, but I've been yapping about the LONG Treasury trade here for over two months)

Wed, 06/08/2011 - 17:19 | 1352491 RobotTrader
RobotTrader's picture

The market has spoken.

The PigMen have decided to allow the market to clear on its own accord and find its own level without any assistance from the Fed.

Wed, 06/08/2011 - 17:24 | 1352496 Deep
Deep's picture

Flip flop Cramer. STFU

Wed, 06/08/2011 - 17:26 | 1352517 Rynak
Rynak's picture

Since when is the market the bernanke and goldman? Oh wait.... nevermind..... that actually makes sense. The only problem is that this "The market" seems to contradict its own data all the time.

Wed, 06/08/2011 - 17:25 | 1352518 HamyWanger
HamyWanger's picture

Robot, bro', I'm beginning to be worried too about a possible stocks correction. XRT has started to fall like a stone and LNKD has not been supported by the Pigmen like I had anticipated. 

Wed, 06/08/2011 - 18:06 | 1352656 Sancho Ponzi
Sancho Ponzi's picture

OT: Cullen Roche takes Jamie Dimon behind the woodshed. Enjoy!

Via PragCap:

Wed, 06/08/2011 - 18:39 | 1352761 cosmictrainwreck
cosmictrainwreck's picture

I like the close "thank yer stars & shut up" but sure wish he'd have gone with "just STFD & STFU, ya asshole!"

Wed, 06/08/2011 - 18:26 | 1352733 Fiat2Zero
Fiat2Zero's picture

You and robot are such obvious agents of the ChairSatan that it is disturbing.

Wed, 06/08/2011 - 21:40 | 1353305 dark pools of soros
dark pools of soros's picture

or they are just E-trade babies

Wed, 06/08/2011 - 17:21 | 1352519 Deep
Deep's picture

Ok Cramer.

Wed, 06/08/2011 - 17:35 | 1352566 LongBalls
LongBalls's picture

And the buyer of $1+ Trillion dollar treasuries will be? And the Treasury will pay back the pension fund money it has borrowed while awaiting congress to raise the debt ceiling how?

Wed, 06/08/2011 - 18:09 | 1352662 css1971
css1971's picture

Someone like me possibly, at 12%


Wed, 06/08/2011 - 17:24 | 1352495 Smokey1
Smokey1's picture

Gross may well be full of shit. If the Dow backs off about a thousand points, the Bernanke  will not hesitate to continue with QE.

Bernanke's probably going to do QE anyway, because his heart is set on it and it is what he does. But he would love the cover provided by a nasty drop in stocks.

Wed, 06/08/2011 - 17:30 | 1352534 rbjmartin
rbjmartin's picture

My thoughts exactly, although I don't think it will take another thousand points to spook Fed board members into begging for more QE. Another 400 to 500 points down, more weak GDP numbers, unemployment constant around 9% to 10%, and sinking real estate prices will leave them with no choice.

Wed, 06/08/2011 - 20:30 | 1353085 WonderDawg
WonderDawg's picture

In a word: bullshit. The Dow is down about 850 since early May and not a peep about QE3, other than the wishful thinking bulls. Unemployment has been around 9-10% for a couple of years now, and the previous QE's did nothing to improve that. Real estate prices have another 40-50% down before they touch any kind of bottom, and the Fed can do nothing to change that, and everyone knows it. It will take several thousand points more off the Dow before the will to throw more money away will reach the tipping point, and at that point it will be too late to make a difference. IMO. 

Wed, 06/08/2011 - 21:46 | 1353315 dark pools of soros
dark pools of soros's picture

QE is not about making the country better..  it's about making the country better for the banksters

Wed, 06/08/2011 - 18:11 | 1352686 Strider52
Strider52's picture

Every time I go to Ireland there is a financial calamity. I arrive in Dublin in 16 days.

 Prepare accordingly.

Wed, 06/08/2011 - 21:47 | 1353320 dark pools of soros
dark pools of soros's picture

are they asking YOU to bring scotch to them yet?

Thu, 06/09/2011 - 00:00 | 1353622 Rational Psycho
Rational Psycho's picture

In insolvent Ireland, scotch drink you!

Wed, 06/08/2011 - 17:24 | 1352498 Mae Kadoodie
Mae Kadoodie's picture

an enigma trapped inside a riddle.

Wed, 06/08/2011 - 17:31 | 1352539 ursus.peracto
ursus.peracto's picture

Throttle down on the clichès.

Wed, 06/08/2011 - 17:25 | 1352523 Smokey1
Smokey1's picture

Gross may well be full of shit. If the Dow backs off about a thousand points, the Bernanke  will not hesitate to continue with QE.

Bernanke's probably going to do QE anyway, because his heart is set on it and it is what he does. But he would love the cover provided by a nasty drop in stocks.

Wed, 06/08/2011 - 22:16 | 1353398 tekhneek
tekhneek's picture

There's no reason to debate it. There will be QE3. It really is that simple.

Imagine what they were saying about QE2 near the ending of QE1.

Buy as much AGQ as you can. I give it 2 weeks before they announce more "fiscal stimulus" regardless of the naming.

Wed, 06/08/2011 - 17:23 | 1352526 Conrad Murray
Conrad Murray's picture

Who will buy debt? Why, your 401k/pension/IRA and whatever the hell else they can find. Bend over and take it debt slave. Come on, squeal like a pig! SUCKERS!!!

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