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Did Bill Gross Just Confirm On Live TV He Has An "Advance Look" At Non-Public Fed Data?

Tyler Durden's picture




 

Recent speculation that PIMCO enjoys trading by piggybacking on what the Fed will do in the future has hopefully not escaped our readers. As we highlighted in Pimco Offloads $40 Billion In Treasurys, As Frontrunning Fed Creates Billions Of Profits; Gross Does Not Expect QE 2 On Sept. 21; Pimco's "Fed Frontrunning" Tell Exposed, Mr. Gross has a knack of buying up on margin either MBS (ahead of QE1) or USTs (ahead of QE Lite), precisely before the points when there is a big marginal push in prevailing prices higher. The fact that he did not do so in the last month confirmed to us at least that the Fed was not going to engage in QE2 on September 21 (which turned out to be the case). Yet it is one thing to speculate based on indirect evidence, and something totally different to hear Mr. Gross on primetime TV essentially validating that he just may have an inside line to the Federal Reserve Board. In all the commotion over yesterday's FOMC announcement, some may have missed the following line uttered by the Newportbeachian: "What is important going into November is the staff forecast for economic growth for the next 12-18 months. Our understanding is that the Fed is about to downgrade their forecast from 3% down to 2%." At which point the CNBC anchors conveniently confirm that Mr. Gross just disclosed something which is completely non-public: "We don't have that forecast yet, right Steve?.. We won't get that for 3 weeks Erin that's when it comes out with the minutes of this meeting." Well, we won't, but Mr. Gross, who manages $1.2 trillion in debt, almost as much as the entire Federal Reserve, sure seems to already have access to it.

While in this country, whose corruption has reached a level that is unprecedented in history, nothing would surprise anyone anymore, perhaps the Fed would at least do the right thing and share the fact that the economy is collapsing not just with the preferred monopolistic purchaser of USTs and MBS, but with all those who naively continue to buy stocks in the hope that a rebound may be "just around the corner."

Fast forward to 5.20 in the below video for the relevant section.

 

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Wed, 09/22/2010 - 14:23 | 597866 morph
morph's picture

Didn't you mention this fed downgrade of GDP yesterday?

Wed, 09/22/2010 - 14:47 | 597950 curbyourrisk
curbyourrisk's picture

Yeah ....  What he said.

 

I think The Kudlow show last night had a mention of it too...

Wed, 09/22/2010 - 15:30 | 598119 boooyaaaah
boooyaaaah's picture

The Mother Of All Conspiracy Theories

The Fed was involved

 

Titanic sunk by steering mistake, author says
    Reuters – The RMS Titanic in what is thought to be the last known image of the ship as she sets sail from Queenstown … – Wed Sep 22, 11:50 am ET

    LONDON (Reuters) – The Titanic hit an iceberg in 1912 because of a basic steering error, and only sank as fast as it did because an official persuaded the captain to continue sailing, an author said in an interview published on Wednesday.

    Louise Patten, a writer and granddaughter of Titanic second officer Charles Lightoller, said the truth about what happened nearly 100 years ago had been hidden for fear of tarnishing the reputation of her grandfather, who later became a war hero.

    Lightoller, the most senior officer to have survived the disaster, covered up the error in two inquiries on both sides of the Atlantic because he was worried it would bankrupt the ill-fated liner's owners and put his colleagues out of a job.

    "They could easily have avoided the iceberg if it wasn't for the blunder," Patten told the Daily Telegraph.

     

    Click image to see recent Titanic expedition photos


    AP/Premier Exhibitions, Inc.-Woods Hole Oceanographic Institution

    "Instead of steering Titanic safely round to the left of the iceberg, once it had been spotted dead ahead, the steersman, Robert Hitchins, had panicked and turned it the wrong way."

     

    Patten, who made the revelations to coincide with the publication of her new novel "Good as Gold" into which her account of events are woven, said that the conversion from sail ships to steam meant there were two different steering systems.

    Crucially, one system meant turning the wheel one way and the other in completely the opposite direction.

    Once the mistake had been made, Patten added, "they only had four minutes to change course and by the time (first officer William) Murdoch spotted Hitchins' mistake and then tried to rectify it, it was too late."

    Patten's grandfather was not on watch at the time of the collision, but he was present at a final meeting of the ship's officers before the Titanic went down.

    There he heard not only about the fatal mistake but also the fact that J. Bruce Ismay, chairman of Titanic's owner the White Star Line persuaded the captain to continue sailing, sinking the ship hours faster than would otherwise have happened.

    "If Titanic had stood still, she would have survived at least until the rescue ship came and no one need have died," Patten said.

    The RMS Titanic was the world's biggest passenger liner when it left Southampton, England, for New York on its maiden voyage on April 10, 1912. Four days into the trip, the ship hit an iceberg and sank, taking more than 1,500 passengers with it.

    Wed, 09/22/2010 - 16:03 | 598237 Almost Solvent
    Almost Solvent's picture

    Really?

    Wed, 09/22/2010 - 17:43 | 598547 TeamAmerica
    TeamAmerica's picture

    WTF are you posting this here?   Utter BS anyway.   Titanic did not "continue sailing", and the reversal of the rudder was an attempted "port around" maneuver...nothing incorrect about it other than being way too late.

    Buy hey, there are some eerie similarities between Titanic and our economy, like people at first not recognizing the ship was sinking...or refusing to believe that it ever could.

    Wed, 03/09/2011 - 12:24 | 1033193 Reptil
    Wed, 09/22/2010 - 14:24 | 597872 TheMonetaryRed
    TheMonetaryRed's picture

    You're surprised that people who manage trillions have access to non-public information?

    Really?

    Honestly?

    Surprised?

    How did you think things worked?

    Wed, 09/22/2010 - 14:27 | 597874 hedgeless_horseman
    hedgeless_horseman's picture

    While in this country, whose corruption has reached a level that is unprecedented in history, nothing would surprise anymore, perhaps the Fed would at least do the right thing and share the fact that the economy is collapsing not just with the preferred monopolistic purchaser of USTs and MBS, but with all those who naively continue to buy stocks in the hope that a rebound may be "just around the corner."

    Wed, 09/22/2010 - 14:31 | 597901 TheMonetaryRed
    TheMonetaryRed's picture

    Yes, but this still implies that it could possibly be a surprise and that corruption "has reached" this level, like, recently - like this is something new. 

    When is it that people imagine things didn't work this way?

    Back when gold was money, like, at the time of the Medici? 

     

     

    Wed, 09/22/2010 - 14:40 | 597928 Xedus129
    Xedus129's picture

    Yeah, the Medici still "bought" themselves a pope.  PMCs were all the rage then too..

    Wed, 09/22/2010 - 16:06 | 598249 doolittlegeorge
    doolittlegeorge's picture

    indeed they were.  indeed they were.

    Wed, 09/22/2010 - 14:55 | 597972 SheepDog-One
    SheepDog-One's picture

    No one 'SURPRISED' by it, just now proven what everyone DENIED a year ago that its all nothing but a rigged scam. 

    Wed, 09/22/2010 - 15:02 | 597997 TheMonetaryRed
    TheMonetaryRed's picture

    duplicate

    Wed, 09/22/2010 - 15:02 | 598002 TheMonetaryRed
    TheMonetaryRed's picture

    "Just now"??????

    Oh, I get it. Now I see where you guys are coming from. Back in the '80's, with all that "free market," "competition" and "meritocracy" stuff? You bought that?

    Yeah, um, not so much. Let me explain it to you simply: there was a contest between Capital and Labor. Capital won. You are not Capital. Sorry.

    Now, of course, it's a contest between Capital and Democracy. So far, a toss-up. 

    Wed, 09/22/2010 - 15:39 | 598155 faustian bargain
    faustian bargain's picture

    No, it's a contest between the fake capital and real capital.

    Wed, 09/22/2010 - 19:33 | 598781 TheMonetaryRed
    TheMonetaryRed's picture

    Let me guess: because you're buying gold, you are "real capital". 

    Yeah...well...I'll let them know. 

    Wed, 09/22/2010 - 15:48 | 598188 Ricky Bobby
    Ricky Bobby's picture

    Marxism is the answer. Men are either slaves to the Capitalists or to the State. Fuck that.

    Wed, 09/22/2010 - 19:09 | 598747 Diogenes
    Diogenes's picture

    "Now, of course, it's a contest between Capital and Democracy. So far, a toss-up. "

    Democracy ended when they figured out how to rig the voting machines. Have you ever noticed how often a candidate can be behind in the polls before an election, win the election, then be behind in popularity after the election? That only started after the voting machines came in.

    That's why they don't give a damn what the public thinks anymore. Their votes are irrelevant. What counts is having enough money for a first class advertising campaign and, in a tight contest, the right guy counting the votes.

    Wed, 09/22/2010 - 15:07 | 598032 Ripped Chunk
    Ripped Chunk's picture

    "While in this country, whose corruption has reached a level that is unprecedented in history"

    Nonsense Sir!  We have only begun to scratch the surface of how corrupt it will get.

    Wed, 09/22/2010 - 14:29 | 597889 packman
    packman's picture

    The surprise isn't that they have the information - the surprise is that one of them admitted it on nationwide TV.

    Wed, 09/22/2010 - 14:34 | 597915 TheMonetaryRed
    TheMonetaryRed's picture

    Dude, what direction do you think this information flows?

    From the Fed to PIMCO?

    Really?

    Who owns the cup of tea containing the leaves Bernanke and the FOMC are reading?

    Wed, 09/22/2010 - 14:56 | 597980 SheepDog-One
    SheepDog-One's picture

    Youre so smart and know it all MonetaryRed why dont YOU start submitting your articles here lets see what you got!

    Wed, 09/22/2010 - 15:07 | 598033 TheMonetaryRed
    TheMonetaryRed's picture

    Be happy to. 

    First I had to figure out where you guys are coming from. Everyone says you guys are conspiracy theorists, but I don't think that's true at all. I find I would have to reduce the level of cynicism in my writings a bit. 

     

    Wed, 09/22/2010 - 15:40 | 598154 RockyRacoon
    RockyRacoon's picture

    Create content

    I probably won't be able to understand your erudite article, however.  I'm just hanging around here to irritate people and generally stink up the place.

    Wed, 09/22/2010 - 16:04 | 598240 Cognitive Dissonance
    Cognitive Dissonance's picture

    And doing a fine job I might add. :>)

    Thu, 09/23/2010 - 05:15 | 599358 Hephasteus
    Hephasteus's picture

    I failed underSTANDing class because it had assigned seating and I never got credit because I was standing in the corner.

    Wed, 09/22/2010 - 16:06 | 598243 Cognitive Dissonance
    Cognitive Dissonance's picture

    Be happy to. 

    First I had to figure out where you guys are coming from. Everyone says you guys are conspiracy theorists, but I don't think that's true at all. I find I would have to reduce the level of cynicism in my writings a bit. 

    And someone called me arrogant. Can I take lessons?

    BTW who is "everyone" and can I meet them?

    Wed, 09/22/2010 - 17:19 | 598497 knukles
    knukles's picture

    Talkin' to me?  You talkin to me?  You must be, 'cause I'm the only conspiracy theorist in the room."

    Wed, 09/22/2010 - 18:00 | 598587 RichyRoo
    RichyRoo's picture

    pfft ur a ptb mole, they PAID you to say that!

    I am Spartacus!

    Wed, 09/22/2010 - 21:16 | 598964 UncleFester
    UncleFester's picture

    Just because I'm paranoid, doesn't mean they aren't out to get me.

    Wed, 09/22/2010 - 23:32 | 599138 Lonewar
    Lonewar's picture

    Psst, Uncle Fester,

    It's worse than you ever imagined, and they already have you...

    Thu, 09/23/2010 - 05:20 | 599359 Hephasteus
    Hephasteus's picture

    We're coming from the corner of where Jung believes a paradoxical mind is a sign of a superior intellect and the psychotic break caused by logic carpet bombing it.

    Wed, 09/22/2010 - 15:07 | 598030 Saxxon
    Saxxon's picture

    Not sure why your message was junked.  And you appear to have an attractive figure in a 1960s pinup way.

    Wed, 09/22/2010 - 15:22 | 598086 TheMonetaryRed
    TheMonetaryRed's picture

    Even we 60's pinups will pay the price for going against the crowd in the...overly tart?...way I have chosen. 

    Wed, 09/22/2010 - 15:45 | 598169 RockyRacoon
    RockyRacoon's picture

    You've not seen pladizow's avatar yet? 

    I think, unless you change the tone of your comments, you'll just get junked for attitude.  Just realize that you are not the only one who has access to facts, and that the same facts can garner differing opinions.  Yours is not the gospel.

    Wed, 09/22/2010 - 16:44 | 598390 iDealMeat
    iDealMeat's picture

    mmmmmmmmmmm pladizow's avatar.. There's something I can sink my handle into..

    Wed, 09/22/2010 - 16:53 | 598424 RockyRacoon
    RockyRacoon's picture

    Getting a little urge to hide some sausage?

    Say, ZH rulers, I have been the 100,000th visitor and "WON!" some shit for the 37th time.  Some dude is yelling at me on my computer and it's irritating.  Any way to tone down the advertising?

    Wed, 09/22/2010 - 22:52 | 599082 StychoKiller
    StychoKiller's picture

    Check this out:

    http://www.mvps.org/winhelp2002/hosts2.htm

    Install it according to the directions, advertising doesn't even get loaded by your browser!

     

    Wed, 09/22/2010 - 19:36 | 598785 TheMonetaryRed
    TheMonetaryRed's picture

    Yes, I do have a horrendous attitude. It's a failing that has been noted before. 

    See, even then I was sort of trying to apologize but came off snotty. 

    Wed, 09/22/2010 - 21:19 | 598972 UncleFester
    UncleFester's picture

    Is she taking a dump in a red sombrero?

    Wed, 09/22/2010 - 14:26 | 597873 knukles
    knukles's picture

    When conspiracy theories cease being of a theoretical....

    That good old third standard deviation persistence effect...

    Wed, 09/22/2010 - 14:51 | 597964 mikla
    mikla's picture

    +1

    This is hardly a surprise (of course we all knew it), but Tyler is tongue-in-cheek questioning the scenario because it was expected that Bill Gross, as a Gentleman, would kindly adhere to the rules of Gentlemen and not say such things in public.  (We all know they conspire illegally, but they are not supposed to rub the public's nose in it.)

    I've long been mystified that society thinks it "normal" for a few guys to hold a meeting, without review, and then announce to the world what should be the price of money.  The fact that everybody expects this as "normal", and yet the CNBC bobbleheads refuse to acknowledge that this is a centrally planned economy ... well, that's just insanely stupid to me. Of course, as we all know, Bill Gross is at the table.  Greenspan at numerous times over the years admits to even telephoning people ahead-of-the-action so they could front-run the market (under the guise of "ensuring stability" as somebody would be assured a profit by taking the opposite side of the trade demanded by the lemmings, herded by the annoucement of Fed action.)

    Assertions that we are a centrally planned economy are defensible.  Assertions that we are not are just stupid.

    Wed, 09/22/2010 - 15:25 | 598090 Spalding_Smailes
    Spalding_Smailes's picture

    I've long been mystified that society thinks it "normal" for a few guys to hold a meeting, without review, and then announce to the world what should be the price of money.

     

    Bilderberg Club

    Bohemian Grove

     

    "For we are opposed, around the world, by a monolithic and ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence; in infiltration instead of invasion; on subversion instead of elections, on intimidation instead of free choice; on guerillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific, and political operations. Its preparations are concealed not published. Its mistakes are buried, not headlined, its dissenters are silenced, not praised; no expenditure is questioned, no rumor is printed, no secret is revealed."

    -John F. Kennedy, April 27, 1961

    Wed, 09/22/2010 - 16:12 | 598264 Cognitive Dissonance
    Cognitive Dissonance's picture

    But...but...but that means John F Kennedy was a conspiracy theorist. Oh my God, say it ain't so. There's no such things as conspiracies. My mainstream media tells me this all the time. At least the kind about government and/or corporate corruption, manipulation, treason, false flag attacks.....

    Ops, sorry. There I go again with my conspiracy theories. At least now I can blame it on JFK.

    Thu, 09/23/2010 - 08:17 | 599440 blindman
    blindman's picture

    thoms jefferson was a major conspiracy theorist and i think he

    was correct.

    Thu, 09/23/2010 - 10:29 | 599734 jomama
    jomama's picture

    the last president this country had.  they blew his brains out for it. it's no wonder every president since then has towed the line.

    Wed, 09/22/2010 - 17:28 | 598522 Arthor Bearing
    Arthor Bearing's picture

    JFK was speaking about the importance of media discretion in reporting stae secrets and troop movements to a gathering of reporters when he said those words. The vast conspiracy he's referring to is Communism, specifically the COMINTERN

    Wed, 09/22/2010 - 17:29 | 598523 Arthor Bearing
    Arthor Bearing's picture

    Sorry double post

    Wed, 09/22/2010 - 21:24 | 598979 UncleFester
    UncleFester's picture

    And what do you call this spectacle unfolding?

    Wed, 09/22/2010 - 14:27 | 597881 T Rex
    T Rex's picture

    Why are you asking us?

    Wed, 09/22/2010 - 14:30 | 597891 T Rex
    T Rex's picture

    Were August housing starts the lowest in the last 50 years?

    Wed, 09/22/2010 - 14:29 | 597887 MarketTruth
    MarketTruth's picture

    Corporatocracy bitches!!!

    Wed, 09/22/2010 - 14:39 | 597923 TheMonetaryRed
    TheMonetaryRed's picture

    "Market Truth" - that's funny. 

    Wed, 09/22/2010 - 14:29 | 597890 Sudden Debt
    Sudden Debt's picture

    And by next week. All of this won't even matter and the markets keep going up.

     

    Wed, 09/22/2010 - 14:30 | 597895 Mongo
    Mongo's picture

    Ben wants 5% nominal GDP... well good luck!

    Wed, 09/22/2010 - 14:31 | 597897 -273
    -273's picture

    Maybe he reads ZH too? I have the same opinion he does thanks to this site.

    Wed, 09/22/2010 - 14:31 | 597899 papaswamp
    papaswamp's picture

    They aren't called Pimpco for nothing....

    Wed, 09/22/2010 - 14:32 | 597904 WineSorbet
    WineSorbet's picture

    Why can't the Fed reveal next weeks MegaMillions lottery numbers?

    Wed, 09/22/2010 - 14:32 | 597905 bada boom
    bada boom's picture

    Quite a tell about cnbc, Erin was right on top of correcting that error.

    As mentioned, not really surprised about Bill knowing the numbers.

     

    Wed, 09/22/2010 - 21:34 | 598990 UncleFester
    UncleFester's picture

    Erin: We won't know that for another 2-3 weeks

    Followed by:  no one knows 5-6 years down the road except maybe Bill Gross.

    Either extremely stupid or completely arrogant.  Stupid in the poorly trained monkey way, fawning over Gross by blowing sunshine up his ass on MSM.  Or arrogant in the "We control everything" way, so who gives a fuck if we laugh about it on national TV.

    Wed, 09/22/2010 - 14:32 | 597906 EscapeKey
    EscapeKey's picture

    I'm sure the SEC will look into these allegations with the same vigous as they look into any other case of grand scale insider dealing.

    Wed, 09/22/2010 - 14:49 | 597957 10044
    10044's picture

    Granny porn vs investigation...hmm, I think they'd rather do the former.
    Zerohedge, TD and marla are simply AWESOME

    Wed, 09/22/2010 - 14:52 | 597966 MachoMan
    MachoMan's picture

    "Tranny porn vs investigation...hmm, I think they'd rather do the former.
    Zerohedge, TD and marla are simply AWESOME"

    Fixed

    Wed, 09/22/2010 - 16:09 | 598254 Pining for the ...
    Pining for the Fjords's picture

    I'm not sure about that Macho, I can see those bastards being into Granny porn...

    Sat, 09/25/2010 - 17:06 | 604649 10044
    10044's picture

    Granny porn vs investigation...hmm, I think they'd rather do the former.
    Zerohedge, TD and marla are simply AWESOME

    Wed, 09/22/2010 - 14:33 | 597909 Running on Empty
    Running on Empty's picture

    Is it me or does Gross look like Achmed.

     

    http://www.rankopedia.com/CandidatePix/36962.gif

    Wed, 09/22/2010 - 14:34 | 597912 tecno242
    tecno242's picture

    we are truly slowly turning into a 3rd world country..

    where the rich keep getting richer and the poor keep getting poorer..

    and everyone inbetween is disappearing.

    Wed, 09/22/2010 - 14:34 | 597913 Bear
    Bear's picture

    Mr. Gross is a Central Banker 

    Wed, 09/22/2010 - 14:41 | 597932 TheMonetaryRed
    TheMonetaryRed's picture

    Yes. Precisely. 

    Wed, 09/22/2010 - 15:54 | 598204 RockyRacoon
    RockyRacoon's picture

    See, it's actually Paul McCulley, not Mr. Bill.

    Wed, 09/22/2010 - 14:46 | 597948 Robslob
    Robslob's picture

    Strange...no telephone numbers or email addresses to go with names...

    How about some HOME addresses then!!!

    Wed, 09/22/2010 - 15:32 | 598131 Commander Cody
    Commander Cody's picture

    What does the Treasury Advisory Committee, composed of central bank members, advise?  Fascism at its finest!  If everyone knew that the money system is totally controlled by the bankster cartel who self-deal to the detriment of a free market, then change might start stirring.  Or not.

    Wed, 09/22/2010 - 14:41 | 597929 Dicite justitiam
    Dicite justitiam's picture

    What does the term "our understanding" mean?

    It is an ambiguous expression.

    I read it as their internal forecast based on Fed methodology, which is transparent and able to be hired if not transparent.  Actually typing this makes it seem completely obvious.  To impute illicit 'access' based on this statement is somewhat of a reach.

    Of course, he may also have complete access to this information, which also makes good sense.  PIMCO could be a mighty tool of gov't policy if used effectively; why not recruit PIMCO to help positively manipulate the market?

    Wed, 09/22/2010 - 14:43 | 597937 TheMonetaryRed
    TheMonetaryRed's picture

    Or, conversely, if you're PIMCO, why not have Bernanke to take the fall?

    Ever thinka that?

    Wed, 09/22/2010 - 14:46 | 597942 hedgeless_horseman
    hedgeless_horseman's picture

    ...why not recruit PIMCO to help positively manipulate the market?

    Awesome idea, comrade. 

    Wed, 09/22/2010 - 14:42 | 597931 kathy.chamberli...
    kathy.chamberlin@gmail.com's picture

    nothing surprises me any more. a year ago, probably.

    tyler, thanks for being on T O P .

    Wed, 09/22/2010 - 16:10 | 598257 doolittlegeorge
    doolittlegeorge's picture

    how about a little fire, scarecrow?

    Wed, 09/22/2010 - 19:17 | 598485 kathy.chamberli...
    kathy.chamberlin@gmail.com's picture

    thanks, ;-}   ;-}

    Wed, 09/22/2010 - 14:45 | 597946 redpill
    redpill's picture

    How... Gross?

    Wed, 09/22/2010 - 14:48 | 597954 sodbuster
    sodbuster's picture

    I think it's spelled- Pimpco!

    Wed, 09/22/2010 - 14:49 | 597958 Young
    Young's picture

    Oh my god, the biggest faggot pussy of them all has gotten airtime again:

    http://www.cnbc.com/id/39305979

    Altucher... You fucking piece of shit.

    Wed, 09/22/2010 - 14:49 | 597960 scratch_and_sniff
    scratch_and_sniff's picture

    Bill wants no tax cuts and more QE, what a cunt.

    Wed, 09/22/2010 - 15:15 | 598059 ranrun
    ranrun's picture

    just as i was closing that tab i heard that.  genius.

    Wed, 09/22/2010 - 14:50 | 597962 DaveyJones
    DaveyJones's picture

    that's why defense attorneys often keep their clients off the stand. It takes a much stronger memory (and psychology) to keep a lie going.   

    Wed, 09/22/2010 - 14:54 | 597969 williambanzai7
    williambanzai7's picture

    Remember we are talking about the same people who strong armed Screwless Lewis into lying to his shareholders.

    Wed, 09/22/2010 - 14:56 | 597984 the grateful un...
    the grateful unemployed's picture

    Gross is completely ingenuous, or we should say the Fed is without guile. The crime is being done pretty out in the open. The days of the opaque Fed statements, and Greenspeak are over. These guys are totally transparent, completely criminal, and amoral, and thoroughly remorseless. That said they aren't going to be around long, if everyone knows what they are doing, (and we should worry about this, because we're not sure what a central bank without a Federal Reserve would be like). Gross is a decent guy, but some others will use the Feds open policy (necessary to assuage this fidgety market) as an excuse to clean their clock. 

    The Fed is a sitting duck. 

    Wed, 09/22/2010 - 14:56 | 597985 Astute Investor
    Astute Investor's picture

    Information is the most valuable commodity I know.

    Bill to Ben:  "Stop giving me information and start getting me information."

    Wed, 09/22/2010 - 14:59 | 597993 Shakes
    Shakes's picture

    Hey you have to go along to get along sometimes I guess. I have PTRAX in a 401k that has performed quite nicely all other things being equal...

    Wed, 09/22/2010 - 15:15 | 598065 snowball777
    snowball777's picture

    His dick was foul, but you needed the money?

    Wed, 09/22/2010 - 18:47 | 598702 nmewn
    nmewn's picture

    Heh heh...I'm stealing that.

    Wed, 09/22/2010 - 15:14 | 598056 tunaman4u2
    tunaman4u2's picture

    2.1% will cause a massive rally now! 

    Wed, 09/22/2010 - 15:32 | 598127 shushup
    shushup's picture

    El-erian defended obama the other on TV also.....proof!

    Wed, 09/22/2010 - 15:35 | 598142 egdeh orez
    egdeh orez's picture

    wow.  golden.

    Wed, 09/22/2010 - 15:55 | 598208 Dagny Taggart
    Dagny Taggart's picture

    I wasn't aware there was much secret in the Fed's agenda anymore. Were we still pretending there are limits or rules?

    Wed, 09/22/2010 - 15:57 | 598215 NotApplicable
    NotApplicable's picture

    Mr. Gross has a knack of buying up on margin either MBS (ahead of QE1) or USTs (ahead of QE Lite), precisely before the points when there is a big marginal push in prevailing prices higher.

     

    And by God, we should thank him for this national service!

    Without him, what chance do all of the widows and orphans that his fund supports really have?

    Wed, 09/22/2010 - 16:03 | 598235 digalert
    digalert's picture

    Note how CNBS LIEsman still tries to fudge the numbers. Gross said "from 3 to 2" and the bald bonehead says "interesting from 3 1/4 to 2 1/4"? We can't even get a sneek peek at honest reports.

    Wed, 09/22/2010 - 16:18 | 598290 doolittlegeorge
    doolittlegeorge's picture

    he is your Treasury Secretary.  You all are lacking in imagination.  Just because a "government" bestows a title on you doesn't make it so.  No one less than Mr. Geithner himself knows this.  Having "kow towed" and "mau-maued" we are now at Miller's Crossing.   Is it enough to simply "stand on principal?" (pun intended.)  i say no less than Bill Gross and PIMCO understand you "cannot fight this battle by sitting still."  In short "it's not the Fed that's out of bullets."  If it's the TS however then that would be far worse, no?  He appears very alone right now to me.

    Wed, 09/22/2010 - 16:19 | 598294 robertocarlos
    robertocarlos's picture

    I'd tell all my secrets to Erin in bed.

    Wed, 09/22/2010 - 16:38 | 598371 FranSix
    FranSix's picture

    Since the discount rate is almost totally ignored in these instances, the rate is staying BELOW the Fed policy rate.  That means the Fed will be obliged to lower interest rates below Japan's, whose rate is BELOW their own market rate.

    Its all about managing perceptions as regards policy rate decisions, in which the Fed will be required to LOWER interest rates.  The Fed policy rate has been almost TWICE the market rate for well over a year now:

     

    (bear in mind the $IRX chart has a decimal point in the wrong place.)

    http://stockcharts.com/h-sc/ui?s=$IRX&p=W&b=5&g=0&id=p19892911321&a=191058127&listNum=2

    The policy rate in Japan is .10%, below the market rate of .12%, but no sign of negative repo's or a negative discount rate mechanism in their sovereign bond markets.

    http://www.bloomberg.com/markets/rates-bonds/government-bonds/japan/

    Its no co-incidence that tax policy discussions, political propaganda and rate decisions all co-incide.  Regardless of the representatives in office, the policy decisions on interest rates will be carried out anyways.

    Wed, 09/22/2010 - 17:18 | 598493 Double down
    Double down's picture

    Love ZH but this was weak.  Horribly circumstantial, he said "our understanding".  Hey,  I am not important but it is not good enough for me to take to court.

     

    Looks vindictive.

    Wed, 09/22/2010 - 18:52 | 598714 carlosschw
    carlosschw's picture

    The front-running of the most inside information is one thing, but I draw the line when the shit hits the fan and these guys are in Washington helping custom craft public policy to ensure maximum yield to their investors. I know it's all done under the guise of helping the little guy's retirement fund so they don't burned when the bonds go down in flames, but come on... You wanat to help the little guys figure out a way to manufacture some jobs instead of the best way to take a quarter percent and leverage it 20:1. Don't get me started!

    Wed, 09/22/2010 - 19:56 | 598820 gwar5
    gwar5's picture

    PIMCO is flipping UST for the Fed, isn't he? So guess I'd be surprised if he wasn't given the crystal ball.

    Wed, 09/22/2010 - 20:43 | 598908 Buck Johnson
    Buck Johnson's picture

    He did let something out and Erin caught it along with Steve.  They are making light of it along with Bill, but they do that in order to show that he wasn't serious.  Believe it or not I can't imagine that the Fed wouldn't be sharing information to PIMCO, since they hold 1.3 trillion in debt.  Since they are required to buy Treasuries if some aren't bought to not have a failed auction.  It would be smart to have a private player to know what the FED is about to do.  PIMCO is essentially a pseudo GSE but without oversight.

    Wed, 09/22/2010 - 21:45 | 599006 UncleFester
    UncleFester's picture

    When one accidentally lets secret information out, you don't revisit it twice unless you are a monkey or imperious.

    Wed, 09/22/2010 - 21:57 | 599023 Common_Cents22
    Common_Cents22's picture

    Could the release of the movie Wall Street 2 be any more timely?  We have reached a new level of corruption, manipulation that would make Gordon Gekko seem like a small time amateur in the first movie.   Gekko is back....uh oh....sell! sell! sell!

    Wed, 09/22/2010 - 22:50 | 599079 Leftmyheart
    Leftmyheart's picture

    Two words:  Neel Kashkari

    Wed, 09/22/2010 - 22:51 | 599080 Daves not here man.
    Daves not here man.'s picture

    idiocy of historic purportion.  how can people justify not buying at least some gold?  maybe im the fool here, but listening to these people is like being on acid, except not in a good way.

    Wed, 09/22/2010 - 23:11 | 599112 camoes
    camoes's picture

    Insider trading m'f'ers!

    Thu, 09/23/2010 - 00:25 | 599208 Jonathan E
    Jonathan E's picture

    Isn't Greenspan still on the Payroll at PIMCO?

    Thu, 09/23/2010 - 07:23 | 599409 GFORCE
    GFORCE's picture

    Haha, that cheating, soft-spoken douchebag!

    Thu, 09/23/2010 - 08:23 | 599449 Grand Supercycle
    Grand Supercycle's picture

    Short signals detected yesterday have now increased.

    http://stockmarket618.wordpress.com

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    CL1's picture

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