Bill Gross: "The Treasury Market Is On A Collision Course With Financial Repression"

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Tue, 05/03/2011 - 09:14 | 1233491 LRC Fan
LRC Fan's picture

Bill Gross is America's new enemy #1 now that Osama has been taken out

-Barack H. Obama

Tue, 05/03/2011 - 09:17 | 1233498 cossack55
cossack55's picture

I hope he is allergic to hot tubs.

Tue, 05/03/2011 - 09:26 | 1233550 Mountainview
Mountainview's picture

Enemy of this government, but friend of today's US children....

Tue, 05/03/2011 - 10:06 | 1233693 redpill
redpill's picture

Bill Gross is a unique form of domestic terrorist(TM)

Tue, 05/03/2011 - 12:24 | 1234489 Thomas
Thomas's picture

He is one of the great snowjob artists. Where was his sense of community as he bought MBS while helping design the bailout involving government purchases of MBS? I think he is correct, but not to be fully trusted.

Tue, 05/03/2011 - 09:17 | 1233510 Re-Discovery
Re-Discovery's picture

What's Pimco to do.

Soooo Buy Gold?  Buy another country?  Buy an army? 

What's left?

Tue, 05/03/2011 - 09:19 | 1233517 becky quick and...
becky quick and her beautiful mouth's picture

white star line brand lifeboats.

Tue, 05/03/2011 - 10:20 | 1233770 amusedobserver
amusedobserver's picture

Did his tanker analogy include the part about pirates boarding and taking over the tanker?

Tue, 05/03/2011 - 10:26 | 1233806 redpill
redpill's picture

we be comin fer yer 20 yarr bonds!

Tue, 05/03/2011 - 12:46 | 1234611 Smu the Wonderhorse
Smu the Wonderhorse's picture

Right full rudder!

Tue, 05/03/2011 - 10:00 | 1233703 I am a Man I am...
I am a Man I am Forty's picture

buy foreign bonds that have a decent yield and balance sheet such as australia

Tue, 05/03/2011 - 10:10 | 1233735 SME MOFO
SME MOFO's picture

Buy CEF then dissolve the trust; instant 6 billion dollar precious metal position put on at a 3% discount to spot

Tue, 05/03/2011 - 09:21 | 1233515 Thorlyx
Thorlyx's picture

He should be careful and watch for Navy Seals in helicopters hovering nearby.

Tue, 05/03/2011 - 09:35 | 1233595 tekhneek
tekhneek's picture

Yeah. Because then they'll crash and shoot him in the face then quickly toss him into the ocean, mob style.

Tue, 05/03/2011 - 09:59 | 1233697 Long-John-Silver
Long-John-Silver's picture

I'm very sure they stuffed him in a holed Tomahawk Missile crate before throwing him overboard. The last thing they want is his body washing up on a beach somewhere.

Tue, 05/03/2011 - 10:24 | 1233794 Calmyourself
Calmyourself's picture

Bingo, large enough holes for the crabs to feast..

Tue, 05/03/2011 - 09:30 | 1233561 oogs66
oogs66's picture

Fed's Hoenig says he says and does whatever Ben tells him to.

Tue, 05/03/2011 - 09:37 | 1233604 FEDbuster
FEDbuster's picture

Bill Gross will not be getting a WH Christmas card this year, or a Happy Holidays from the FED.  Perhaps an 18 foot block wall around the house topped with barbed wire is in order? Are "financial terrorists" subject to rendition?

Tue, 05/03/2011 - 09:20 | 1233523 SheepDog-One
SheepDog-One's picture

Bill Gross will probably get a throwing knife in the face and dumped in the sea.

Tue, 05/03/2011 - 09:38 | 1233592 TruthInSunshine
TruthInSunshine's picture

PIMCO gets a visit from Seal Team Six?

Moe Green Specials for everyone?

Tue, 05/03/2011 - 09:21 | 1233527 Cleanclog
Cleanclog's picture

Deflation is still the primary trend, despite the serious inflationary elements of energy and food. Classic biflation that will eventually make an equity correction and UST 10yr will rally back to 2%. Gross and PIMCO will be back in the market big time before then.  I think he's just gonna wait until debt ceiling is raised.

Tue, 05/03/2011 - 09:28 | 1233547 Ruffcut
Ruffcut's picture

Then he will pile back in like a bandit in a financial junkyard.

The weasel knows how to make money, the new fashioned way.

Tue, 05/03/2011 - 09:26 | 1233551 Internet Tough Guy
Internet Tough Guy's picture

Treasury puts = hyperinflation insurance. Gross is probably long so he gets those dollars and outruns you, dear campers. Good luck outrunning the bear.

Tue, 05/03/2011 - 09:28 | 1233552 ThisIsBob
ThisIsBob's picture

If Gross doesn't like Treasuries, how can anybody?

Tue, 05/03/2011 - 09:39 | 1233608 Urban Redneck
Urban Redneck's picture

required regulatory capital for FIs

Tue, 05/03/2011 - 09:34 | 1233569 Boston
Boston's picture

The argument over whether the end of QEII on June 30 will result in higher yields and lower Treasury bond prices is, in a sense, a secondary one. Even if 10-year Treasuries stay where they are at 3.30%....


Sounds like Gross is changing his story.  Now he's admitting the possibility that nominal rates could stay low.....for a long time.  So far.....over the last month since he sounded his alarm.....Bill Gross has been DEAD WRONG about Treasuries, which have done nothing but CLIMB in price.

Also, Gross is very inconsistent.  Two years ago, when it suited hime just fine, he yapped about "shaking hands with the government" and "getting under the government's umbrella".  So it was OK then to join forces with the evil manipulator back then, but today it's not!?

Tue, 05/03/2011 - 09:48 | 1233635 4shzl
4shzl's picture

Gross's main (only?) function at Pimpco is to throw head fakes for the trading desk.  A few months from now we'll all discover that his firm has a megaposition in zero-coupon 30-yrs.

Tue, 05/03/2011 - 09:36 | 1233584 Rogerwilco
Rogerwilco's picture

An interesting historical context for yields. Desperate times call for desperate measures -- how long before Bernanke punishes hoarders (aka savers) with actual negative rates on on their accounts? Turn that money over in the economy, or turn it over to Uncle Sam...

Tue, 05/03/2011 - 09:41 | 1233606 the not so migh...
the not so mighty maximiza's picture

I thought we allready have this.  1.00 % with savings and  8-10 % inflation seem negative to me.

Tue, 05/03/2011 - 09:50 | 1233658 Rogerwilco
Rogerwilco's picture

I'm talking about an actual levy on asset accounts, a "wealth tax" that leaves no doubt. Of course it would be billed as temporary measure...

Tue, 05/03/2011 - 10:03 | 1233709 the not so migh...
the not so mighty maximiza's picture

got it

Tue, 05/03/2011 - 09:43 | 1233631 Kina
Kina's picture

If you have cash do what the greeks did, get it out of the country while you can.

Tue, 05/03/2011 - 09:34 | 1233586 trav7777
trav7777's picture

Gross is just having trouble steering any yield into the trillion plus AUM...he wants easy street back

Tue, 05/03/2011 - 09:38 | 1233591 firstdivision
firstdivision's picture

Bill does too much book talking to take him seriously.  If he has finally had an epiphany, then good, but I still find it hard to believe he lost faith in treasuries.

Tue, 05/03/2011 - 09:41 | 1233607 SheepDog-One
SheepDog-One's picture

China has lost faith in treasuries. What does anything else matter? If you have no buyers of treasuries except the treasury itself, its all a fools argument.

Tue, 05/03/2011 - 10:17 | 1233762 SME MOFO
SME MOFO's picture

yes, china is the tell. 

I love the chicken littles worried abut gold and silver, as if china is TRADING this shit instead of BUYING EVERY SPECK OF IT ON THE PLANET. 

Tue, 05/03/2011 - 09:38 | 1233594 beastie
beastie's picture

Not trying to hijack the thread but figured this deserves a mention.

Online database of SLV inventory is here. This is a step further than previous projects on the subject. It will be added to as more data is mined etc.

Tue, 05/03/2011 - 09:39 | 1233596 Henry Chinaski
Henry Chinaski's picture

ZIRP + QE = negative real yields

click... click... the fed is out of bullets and something's gotta give

Tue, 05/03/2011 - 09:40 | 1233599 SheepDog-One
SheepDog-One's picture

The real story- China dumps US Treasuries hand over fist. 

All else is 1 hand clapping.

Tue, 05/03/2011 - 09:42 | 1233613 equity_momo
equity_momo's picture

Bill likes to shoot his mouth off. I'm still waiting for the nitroglycerine that UK Gilts are balanced on to go off.  Well Bill? Oh , you mean to say you got long Gilts into that tiny wobble your comments caused? Gotchya.

Tue, 05/03/2011 - 09:40 | 1233617 unclebigs
unclebigs's picture

Gross is a snake.  He wants to scare treasury yields higher and then pounce on the fear.  Soon he'll be on CNBS bragging about how much he made going long treasuries right before the big rally.

Tue, 05/03/2011 - 09:41 | 1233618 Quinvarius
Quinvarius's picture

Print and hoard.  Th eeconomy needs money, so we print it.  If the economy gets money, we will have inflation worse than now, so we hoard it.

Tue, 05/03/2011 - 09:42 | 1233626 Life of Illusion
Life of Illusion's picture


Where was Gross when Canadian and Aussie dollar was 40% less in 08,09 and stocks tanked. He was sucking Fed and he should have been bailing then buying EM. I would never have him manage my $$.

Tue, 05/03/2011 - 09:47 | 1233628 X. Kurt OSis
X. Kurt OSis's picture

Aww.  Someone's still feeling a little butt-hurt.


Edit: That said, with the 10 year at 326, I think its time to start heading for the other side of the boat.


Tue, 05/03/2011 - 10:14 | 1233760 topcallingtroll
topcallingtroll's picture

He is the king for sure.

The king of failed trades.

Tue, 05/03/2011 - 10:28 | 1233799 X. Kurt OSis
X. Kurt OSis's picture


There are two lessons here about the state of affairs:

1- In this Orwellian nightmare of a market, you probably won't be able to profit from being right.  Precisely why ZH is probably not the best source of advice for those looking for shorter term profits.  Too much truthiness, not enough "reality."

2- No matter how right douchebags are, they are still douchebags.


Tue, 05/03/2011 - 09:44 | 1233632 SheepDog-One
SheepDog-One's picture

What would treasury yields be if not for Bernanke buying the hell out of them? 

Tue, 05/03/2011 - 10:25 | 1233788 nevadan
nevadan's picture

Hmmm.  I'm wondering what yields will be when Bennie and the inkjets meet PBOC and their 3 trillion supply (Not to mention the BOJ, etc).

Tue, 05/03/2011 - 10:57 | 1233916 the grateful un...
the grateful unemployed's picture

or put another way, if the government had to fund its shortfall by selling paper, and it wasn't buying its own, where would rates land? the Fed may well try incrementally raising rates to fill that demand, or jawboning if you will. the one thing Bernanke has taken for granted and he shouldn't is that wage pressures will remain nonexistant. with a declining or shrinking workforce, wage increases have the potential to leverage inflation on the rest of us. and one senses we are close to that tipping point where US workers say 'no mas' we want our COLAs and we want them now.

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