Gross, El-Erian Rumored Replacements For Larry Summers

Tyler Durden's picture

Rumor making rounds now that either of Pimco's top two men could replace the man who destroyed Harvard's endowment. Should either of these two be forced to quit Pimco, it would mean that QE would have to be massive to make sure that the Fed is a backstop of last reserve in case the next head of Pimco is unable to replicate his predecessor's success.

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Everyman's picture

GEEZ!  These 2 are the LAST PEOPLE I want in charge of monitary policy.

This just keeps getting worse.   PIMCO guys?  The ones that advertise on CNBS????



etrader's picture

Hugh Hendry would be better.....

He's on Eric King's site today,  who's a friend of ZH. (Note the ZH shout out at the start of the interview :>)


Missing_Link's picture

Hugh Hendry and Rosenberg?  Are you kidding?  No, no, no.  The Obama admin only wants people who are capable of drinking the Kool-Aid and lying through their teeth about everything.  Those are the last two people on earth who'd ever get the job.

illusionist's picture

Bring on Bernie Madoff - the man for task

Arius's picture

How about good ol" BERNIE Maddoff ?

IQ 145's picture

 uh. yeez, that's an ugly rumor, alright.

whatsinaname's picture

Didn't El Erian ambush the Harvard endowment by pushing into Emerging markets as the collapse was accelerating out West ?

Maybe Larry hired him before he fled to Washington ?


illusionist's picture

It was a close toss up between either or both of them and the first choice - Bernie Madoff....

Jim B's picture

LOL Bond Mafia

Didn't Gross want the FED to back all mortgage securities......

pile of poop's picture

Yes and he calls for massive QE and stimulus spending ad infinium in his latest letter:

rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) Sep 28, 2010 11:20 AM
















Miles Kendig's picture

Bill Gross divest?  hahahahahahahaha  OOps.  It's PIMCO.  Never mind.

sumo's picture

Nah, Phil Gramm, the Senator for Enron - only he could top Larry Summers (given that Bernie Madoff is busy).

illusionist's picture

Don't lose hope just yet. Bernie could find the time - this may constitute community service

Paper CRUSHer's picture

T'will be the New Normal.

Paper CRUSHer's picture

double post deleted.

gapcrap's picture

Once again...the fox guarding the henhouse. Why not invite Blankfein to the party also.

illusionist's picture

Shh! He is very busy doing god's work.

imokruok's picture

They'll just get the Fed to buy their book. What a freaking disaster.

hedgeless_horseman's picture

Wait until you see the moron that is waiting in the wings (PIMCO equities (oxymoron)) to replace the one that leaves. 

He's fresh off his shed-building hiatus and experienced with the new normal of napkin-based legislative investing.

He's your man when the only orders that matter are Executive Orders.

PIMCO needs to hit big numbers; who is better at making (up) a big number?

Problem Is's picture

Your friend and mine, h_h?

Neel "Down You Bald Bitch" Kashkari?

Cognitive Dissonance's picture case the next head of Pimco is unable to replicate his predecessor's success.

I assume this is sarcasm?

On the contrary, with a Pimpco man making the government plan, the correlation will grow stronger, not weaker. Remember, there are no longer any barriers (if there ever were any) to full blown corruption. GS led the way and Pimpco is taking the baton and running towards the Fed/Treasury light.

Jason T's picture

"Mr. Greenspan, it should be noted, now works for Pimco as a consultant."

Masters of the same universe.  


palmereldritch's picture

On Pimco's Gross:[snip]

"He says he can’t even visit that floor himself anymore without a company lawyer at his side. The last time he did was in December, when he wished the traders happy holidays.

“I said, ‘Merry Christmas,’ ” Mr. Gross recalls. “The lawyer said, ‘Mr. Gross says Merry Christmas.’ Right then and there, I knew that communications were basically severed. That’s the way the Fed wants it."

An amazing gem from an absurd puff piece. 

Thanks for the link


The Real Fake Economy's picture

wow great article! was on my honeymoon when this came out so I never read this sadly enough, but this should tell you all you need to know about gross.  he says he's no alpha male but then goes on to say, if i have to choose between screwing over my clients or screwing over the government/taxpayer, i'm screwing over the latter.....typical.

and I guess we never got the PPIP ball rolling either, seeing as QE and uncle sam back stopping everything was enough to drive financial higher from March/april 09.


williambanzai7's picture

Did either of those two guys ever manufacture anything besides paper?

StychoKiller's picture

Hyper-dimensional origami required to make CDO^2 and CDS count?

pamriallc's picture

The problem with anyone who knows Washington well is that whoever replaces Summers will be stuck as more of a politician than anyone capable of improving current conditions.  A great CEO with a completely bankrupt board of directors will get nowhere fast, and lose credibility in the process.

Please understand the following: "A great management team with a great reputation can try and improve a crummy business;  but in the end, only the reputation of the crummy BUSINESS remains in tact."

Intelligent business people who already have all of the money that they need (and people willing to make big waves) will never be chosen for these roles.  Only when "Atlas-has-Shrugged" and truly capable people have refused to consult the system (without first demanding extraordinary leeway) will we be in a position to improve conditions.


Shawn Mesaros, Pamria, LLC

goldmiddelfinger's picture

If El-Arian joins forces with Hussien Obama will the WH install a mosque?

rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) goldmiddelfinger Sep 28, 2010 11:37 AM

sharia finance here we come

MarketTruth's picture

Small correction in the article above ;-)


knukles's picture

It don't matter anymore, anyway.  Until proven otherwise the marketplace has come to believe whole system a criminal enterprise with positions and appointments being Shuffled to meet necessary public appearances. 

Hang The Fed's picture

I guess that they're working their way up to the hiring of even bigger cranks than the ones they have now, eh?  Fucking wonderful...instead of just swimming in a big river of shit, we'll be drowning in it before long.

theworldisnotenough's picture

Someone else for Obama to ignore...

shushup's picture

I should have know. El-Arian actually defended the BO administration last week and saidthe now famous "They inherited........blah blah blah"

Prof Quagmire's picture


"....full blown corruption..."  Or full blown fascism, depending on how you define it.  The favored few will see their "private enterprises" merged into government and become indistinguishable from it.

London Dude Trader's picture

Great, so Mohammed can finish the fuck-up job he started in Cambridge, Mass by singlehandedly half-destroying Harvard's endowment. 


I wonder why nobody ever seems to mention that genius' accomplishments during his 4-year tenure as Harvard U's head hedge fund manager. 

curbyourrisk's picture

Give me Denninger!!!!!!!!

StychoKiller's picture

I would take the job except I value my life, not to mention my sanity, more than perpetuating this crazed financial fun house!

tahoebumsmith's picture

Why not add Brian Sacks to the list as well? They are all sleeping in the same bed with Tim Geithner. It doesn't really matter which " PIMP..CO" exec takes over at this point because as you have noted quite thoroughly the outflows in mutual funds has been massive and will continue as more Americans wake up and realize they are being robbed blind. This whole ponzi is on the edge of the cliff and it can't back away because there are too many angy Americans lined up ready to push it over the edge. The only logical answer in the end will be a reset button on the dollar..Cash in your currency for 30% of it's value and take the haircut...Summers, Orszag and Romer are all running scared as they don't want to be around when the real shit hits the fan.

rapacious rachel wants to know's picture
rapacious rachel wants to know (not verified) tahoebumsmith Sep 28, 2010 12:18 PM

never to forget Rahmbo and Axelrod

Bankster T Cubed's picture

Hey what about THE JOKER from Batman?  Is he not available?

Or Lex Luther? 

Or Osama Bin Laden?


StychoKiller's picture

Well, let's see -- we've already had the Riddler (Greenspan), so let's go with "Egghead!"

RobotTrader's picture

By the way....

When is Eric King going to interview the CEO of BIDU?

A_MacLaren's picture

Lovely, more failed neo-Keynesians to replace the exiting neo-Keynesian(s).