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Bill Gross Explains The Fed's Bubble "Merry-Go-Round" In One Tweet

Tyler Durden's picture


Bill Gross has become quite the expert at explaining the Fed's flawed, ruinous and destructive "policies" in 140 characters or less. Today is no exception.


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Mon, 10/22/2012 - 10:53 | 2909437 Zen Bernanke
Zen Bernanke's picture

dear bill, don't forget about bonds !

Mon, 10/22/2012 - 10:56 | 2909457 Troll Magnet
Troll Magnet's picture

come buy my house, bill! i'll give it to you for just two monster boxes of those shiny yellow stuff.

Mon, 10/22/2012 - 11:17 | 2909537 Tsunami Wave
Tsunami Wave's picture

Meanwhile in PIMCOland... nice bets on buying those MBS Bill.

Mon, 10/22/2012 - 11:25 | 2909561 FEDbuster
FEDbuster's picture

Just give me one more chance to sell my remaining rental properties.  Keep blowing that real estate bubble Benny.

Mon, 10/22/2012 - 11:33 | 2909578 ZerOhead
ZerOhead's picture

Has anyone else ever noticed that you never see Tyler and Bill Gross at the same time?


Mon, 10/22/2012 - 11:59 | 2909698 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

Tyler's busy boning women

Mon, 10/22/2012 - 12:35 | 2909827 Zero Govt
Zero Govt's picture

you mean boning fish

...i gave him my fish pie recipe a month ago

Mon, 10/22/2012 - 11:38 | 2909603 Snoopy the Economist
Snoopy the Economist's picture

Troll: I will give you 2 monster boxes of tungsten spray painted yellow. Do we have a deal?

Mon, 10/22/2012 - 11:34 | 2909583 TheCanadianAustrian
TheCanadianAustrian's picture

Bill Gross runs the largest bond fund in the world. Something about not wanting to throw stones and living in glass houses.

Mon, 10/22/2012 - 13:39 | 2910033 DaveyJones
DaveyJones's picture

Bill Gross certainly lives up to his name. A Vegas man at heart (& soul).

Mon, 10/22/2012 - 11:56 | 2909683 Stoploss
Stoploss's picture

I've got all my hard assets Bill, just waiting on the ultra distressed ones to begin falling out of the balloon!

Figgin ta be a lotta good cheap shit about ta become available.

Mon, 10/22/2012 - 11:57 | 2909687 Stoploss
Stoploss's picture

Wadell Reeded..

Mon, 10/22/2012 - 12:09 | 2909740 Stock Tips Inve...
Stock Tips Investment's picture

Personally, I think the next bubble to burst is the bond. The Fed, the ECB and the Bank of Japan, are making great efforts to keep interest rates at a level unrealistically low. There are trillions of dollars involved in this process. But we know this is artificial. Sooner or later, reality will impose. If I had bonds, I would care to have a high liquidity. Would also look at your quote two or three times a day. As soon something strange appeared in the sky, liquidate all my positions. The losses will be extremely large.

Mon, 10/22/2012 - 10:53 | 2909439 tuttisaluti
tuttisaluti's picture

I'm getting dizzy

Mon, 10/22/2012 - 10:56 | 2909455 JPM Hater001
JPM Hater001's picture

I'm getting drunk.


Guess I picked the wrong week to quit.

Mon, 10/22/2012 - 10:56 | 2909440 TruthInSunshine
TruthInSunshine's picture

And each re-inflation cycle takes 10x the fiat printing and leadings to 50% less "flation" than previously (in nominal, let alone real, terms).



Mon, 10/22/2012 - 10:56 | 2909458 LawsofPhysics
LawsofPhysics's picture

...and the exponential destruction in the purchasing power of the dollar.  -  FAIL.

Mon, 10/22/2012 - 10:59 | 2909463 resurger
resurger's picture

The 1000 USD note is coming soon to an exchange near you!

Mon, 10/22/2012 - 11:06 | 2909484 TruthInSunshine
TruthInSunshine's picture

- "The 1000 USD note is coming soon to an exchange near you!"

New Federal Reserve Note Recently Spotted

Mon, 10/22/2012 - 11:48 | 2909644 catacl1sm
catacl1sm's picture

It doesn't have Benny's face? Travesty!

Mon, 10/22/2012 - 13:44 | 2910063 DaveyJones
DaveyJones's picture

Is Ohio's 'secret' energy boom going bust?

An informative article on the Utica play including mysterious disappearing oil windows.

"....In an SEC filing this May, the company said it was planning to drill a significant number of wells in Utica's "oil window" over the rest of this year, referring to an area that is expected to hold mostly oil. Three months later it said it "continues to focus on developing the wet gas and dry gas windows," with no mention of oil. Chesapeake declined to comment on the change in description."

  mass - If this isn't a misprint it has to be one of most bizarre statements I’ve seen in a while: “McClendon (head of Chesapeake) himself says secrecy actually benefits his shareholders. He said in November that Chesapeake would stop reporting well-result details to investors because positive well data were driving land prices higher.” So he’ll hold back data that might run land prices up which would also cause stock price to rise. So a shareholder may sell his stock at a price lower than he might had the POSITIVE data been released. But, at the same time, an investor might be willing to pay more for CHK stock based on McClendon’s admission of “secrecy” by assuming CHK is holding back POSITIVE data when in fact they are holding back NEGATIVE data. But by admitting he’s withholding positive results he’s also admitting withholding negative results. You can’t do one without the other. IOW if they only report all wells with negative results then the implication would be the unreported wells had positive results.

He may have said he’s doing this to keep lease costs down but it’s also an admission of manipulating the company’s valuation via press releases. The SEC normally has a dim view of such activity. And if the Utica doesn’t live up to expectations and CHK stock drops when that info is eventually made public I would expect shareholder lawsuits based upon withholding critical financial data. Ohio may not require the timely release of critical data but the SEC does.

  Another sociopath running a public company. Wouldn't touch this company with a thousand feet of drilling pipe.
Mon, 10/22/2012 - 11:07 | 2909472 TruthInSunshine
TruthInSunshine's picture
Spot Krugmanrand prices are surging, too!


*Krugmanrand: A gold colored powder-coated round, composed of 10% tin and 90% nano-coated bullshit particles, bearing the slogan "In Diocletian We Trust" and "To Infinity & Beyond!" on one side, alongside "CTRL+P," and having the other side enscribed with "What, Me Worry?" alongside an engraved likeness of one Ben S. Bernanke (Shakey McShakester).

Mon, 10/22/2012 - 11:12 | 2909509 machineh
machineh's picture

Lots of people are buying bags of junk Krugmanrands by the pound.

Mon, 10/22/2012 - 10:58 | 2909461 Atlasshruggedme
Atlasshruggedme's picture

I like silver over gold... I like Gold over fiat. 

Mon, 10/22/2012 - 10:54 | 2909443 stinkhammer
stinkhammer's picture

there is vomit all over the ride!

Mon, 10/22/2012 - 10:56 | 2909447 LawsofPhysics
LawsofPhysics's picture

hey bill, unfortunately wages matter.

Mon, 10/22/2012 - 11:07 | 2909486 Orly
Orly's picture

Bllllllllling!  You are correct, sir!

Mon, 10/22/2012 - 10:55 | 2909449 Lost Wages
Lost Wages's picture

Just tell me what's going to be inflated next before it's actually inflated.

Mon, 10/22/2012 - 11:10 | 2909494 GMadScientist
GMadScientist's picture

My johnson.

Mon, 10/22/2012 - 11:30 | 2909571 Spastica Rex
Spastica Rex's picture

Thanks for the warning.

Mon, 10/22/2012 - 12:14 | 2909759 GMadScientist
GMadScientist's picture

NP, but you may want to step back. ;)

Mon, 10/22/2012 - 10:56 | 2909454 Atlasshruggedme
Atlasshruggedme's picture

The best part is this will work... As long as the Sheep continue to sleep. 

(Hey look over here! Its a Karfatistan)

Mon, 10/22/2012 - 10:57 | 2909456 hampsterwheel
hampsterwheel's picture

seems to be working just fine - it will never ever end - the Fed/ECB and IMF are all powerful - you can print trillions of fiat dollars without any ramifications or prices going up - hell SSecurity is only getting a 1.3% COLA - back to bed - wake me when its over.....

Mon, 10/22/2012 - 10:57 | 2909460 resurger
resurger's picture

Mark housing to face value and get this shit over , "people will feel "Richer" when the prices of their assets go up"

The Richer must get Richer!

Mon, 10/22/2012 - 10:59 | 2909467 turbosuperman
turbosuperman's picture

'Round and 'round we go!  Where we stop? Nobody knows!

Mon, 10/22/2012 - 11:02 | 2909477 Mr Pink
Mr Pink's picture

You can see it happening in my area right now. Most of the foreclosures are being sold to minorities for little or no money down. I talked to a guy last week who was unemployed and going to school. He told me that he was just approved for a mortgage on a foreclosure. He just needed to come up with $2500 bucks!

Is there some new program that us crackers havent heard about?

Mon, 10/22/2012 - 11:08 | 2909491 GMadScientist
GMadScientist's picture

Yeah, it has great benefits...once you get used to the bars.


Mon, 10/22/2012 - 11:05 | 2909479 j0nx
j0nx's picture

Keep on inflating housing another 15% so I can sell to some other bag holder and be rid of this monkey on my back once and for all.

Mon, 10/22/2012 - 11:06 | 2909483 vincent van goo
vincent van goo's picture

Inflate housing again?  How?  You need buyers to participate, and either lending standards are too tight, or the consumer refuses to get burned again.  Of course, like the other responses, the bastards can just devalue to the dollar.

Mon, 10/22/2012 - 11:17 | 2909535 Mr Pink
Mr Pink's picture

See above post

Unqualified buyers are being given loans again. Probably paying top dollar for run down foreclosures because they don't need a down payment!

If this sounds familar its because it is

Mon, 10/22/2012 - 11:08 | 2909487 GMadScientist
GMadScientist's picture

Fuck you, Bill...goddamn hypocrite; how much fucking MBS are you holding, prick?

Mon, 10/22/2012 - 11:15 | 2909526 Dr. Engali
Dr. Engali's picture

His job it to make "money" for his clients. Everybody knows what the fed is going to do. All he is doing is front running the fed, and he would be stupid not to.

Mon, 10/22/2012 - 12:19 | 2909764 GMadScientist
GMadScientist's picture

I can still find his Jedi-mindtrick un-"talking his book" insulting though.

And what do I care what the fucker says if he doesn't back it up?

The intellectual equivalent of a crack dealer doing DARE indoctrination for the kiddies.

Mon, 10/22/2012 - 11:09 | 2909489 machineh
machineh's picture

'Inflate stocks til 2000. Then inflate housing til 2007. Then inflate stocks til 2012. Now inflate housing again.'

a/k/a 'Bubbles 1, 2, 3 and 4.'

Strange that Gross fails to include negative-yield bonds in Bubble 3.

Mon, 10/22/2012 - 11:12 | 2909510 monopoly
monopoly's picture

I must admit, my respect for Bill G. is improving. Telling the truth. Interesting.

Mon, 10/22/2012 - 11:14 | 2909523 machineh
machineh's picture

Like politicians, fund managers start to blurt out the truth just before they retire.

Mon, 10/22/2012 - 12:43 | 2909863 Hubbs
Hubbs's picture

Sounds like he got double crossed by the FED or the politicians and was told to walk.

Mon, 10/22/2012 - 11:11 | 2909511 Everybodys All ...
Everybodys All American's picture

...implying 2014 is the end again Bill?

Mon, 10/22/2012 - 11:12 | 2909516 ebworthen
ebworthen's picture


This is why we have a housing "recovery" in certain areas.

Shadow inventory, and almost anything selling using FHA loans (and USDA).

FED buying Mortgage Backed Securities the most naked bubble blowing of all.

$40 billion per month into securities based on bad mortgage portfolios in perpetuity and claiming it will help improve employment, UN-fucking-believable.

Houses are a drain; front loaded mortgages with cash going to banks while maintenance and taxes held by home "owners" who are essentially tenants of the state/banking kleptoligarchy.

House and property can be confiscated simply to increase tax revenues, so you never really "own" it.

Ponzi, Ponzi, Ponzi.

Mon, 10/22/2012 - 11:53 | 2909672 catacl1sm
catacl1sm's picture

Shortly after announcing that the FED would be buying $40B in MBS's per month I figured, that combined with the $45B in Twist going on, that the Fed could just send a check of $1700 to those people that pay taxes every month. This would stimulated demand and have an overall better effect than just giving it to the banks and waiting for it to trickle down. Of course, it would be highly inflationary and that inflation would be evident, whereas doing what they are doing now allows them to hide the inflation and blame it on Ohfuckistan and evil speculators.

Mon, 10/22/2012 - 12:04 | 2909717 Boxed Merlot
Boxed Merlot's picture

whereas doing what they are doing now allows them to hide the inflation and...


gain legal possession of properties their private sector bank owners would otherwise be prosecuted for in their packaging of this junk to begin with. 

This mobius strip is incredibly long with more than a single twist.  Krugman can explain it but only if you're smart enough to pay the tuition.


Mon, 10/22/2012 - 12:37 | 2909843 riphowardkatz
riphowardkatz's picture

yes  more demand stimulates for tatoos, nose piercings, manhatten real estate, gold, silver , diamonds and high end art

Mon, 10/22/2012 - 11:13 | 2909519 WhiteNight123129
WhiteNight123129's picture

Wrong diagnostic Mr. Gross. NOW INFLATE GOV BONDS.... Later Gold.... Later Soft commodities.... In the long run we are all dead...


Mon, 10/22/2012 - 11:20 | 2909540 DormRoom
DormRoom's picture

How can there be another housing bubble, if it's been reported that there are millions of foreclosed home in shadow inventory.  Shouldn't the inventory be cleared first?  Do the banks let those houses, housing subdivision crumble?  How can you make millions of homes dissappear? 


Central Banks do not want any misallocation of capital to clear.  They print, and ignore. Gah!

Mon, 10/22/2012 - 11:20 | 2909543 rajc
rajc's picture

ah great! by 2020 everyone will know the scoope on this and will be millionaires :) woot

Mon, 10/22/2012 - 11:21 | 2909550 Quinvarius
Quinvarius's picture

I guess old bill went long Friday while screaming about 1987.

Mon, 10/22/2012 - 11:24 | 2909559 ebworthen
ebworthen's picture

Anecdote:  a Ruby Tuesday restaurant built in 2003, brand new.  Went out of business two years ago - hurt by Chili's and the newest fad cattle trough Texas Roadhouse. 

Sat vacant for two years for lease; they just bulldozed it this past week.

No doubt someone has a dandy tax write off and the bank flushed it.

PARASITISM is where we are at.

Mon, 10/22/2012 - 11:32 | 2909576 thomasincincy
thomasincincy's picture

A Nation of leasing property. I think this can be attributed to the city problems as mentioned. Years ago a family may own the building with apartments and business below. No real ownership anymore, just renters

Mon, 10/22/2012 - 11:31 | 2909572 Dareconomics
Dareconomics's picture

The Fed has adopted a bubble inflation policy to fight deteriorating economic conditions.

What happens when we run out of bubbles?

Mon, 10/22/2012 - 11:39 | 2909606 TideFighter
TideFighter's picture

I'll bet Gross has to inflate his Johnson too. I'm long on my Johnson.

Mon, 10/22/2012 - 11:39 | 2909609 Milton Waddams
Milton Waddams's picture

Notice the one bubble Bernanke dare not inflate:  the Average Hourly Earnings of Production and Nonsupervisory Employees bubble.

Mon, 10/22/2012 - 12:55 | 2909894 Incubus
Incubus's picture

because nothing comes from that class besides prostitutes.

they can't even make things as cheap as asia does, and they want more for a smaller cost:productivity ratio.

It was never about "the people." You tell them what they need to hear so that they'll go out and be good workers.  It the end, it's always been about the management and exploitation of labor from people.  We'll be doing the same old dance a thousand years from now.  Ignorance really is bliss;  I wish I could just tune into some reality television and be totally ignorant to the cliff.  What difference does it make if you have knowledge of the cliff before hand if you're going to be dragged over, regardless?






Mon, 10/22/2012 - 11:40 | 2909612 Broccoli
Broccoli's picture

Sold my house 3 months back in Colorado. I had 3 separate buyers come to negotiation. None of them cared about total price, they only cared about negotiation the highest amount of seller paid closing costs. I had one tell my agent that they would not accept dropping the price by $15,000 if they had to bring even $1,000 to closing. 15:1 trade off and they wouldn't do it.

Housing bubble is back baby. I naively thought the days of zero down loans were gone. They just have a new name, seller paid closing costs! Jack that sale price up to compensate and the bank paid appraiser magically appraises the house at 1k over negotiated selling price.

Mon, 10/22/2012 - 11:50 | 2909656 Duke of Con Dao
Duke of Con Dao's picture

here's Cliff in 13 characters 

YouTube - Cliff Robertson: The Answer to Everything

Mon, 10/22/2012 - 11:56 | 2909681 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

inflate housing til 2015

Mon, 10/22/2012 - 11:59 | 2909690 Snoopy the Economist
Snoopy the Economist's picture

How in teh world can housing get inflated again with the bank's shadow inventory of forclosures somewhere in the millions? Maybe some martians will land with a shitload of gold that's useless to them.

Mon, 10/22/2012 - 12:35 | 2909829 riphowardkatz
riphowardkatz's picture

you should actually research a market before making a comment. houses are being bought by the thousands and turned into rentals. remaining shadow inventory will recover to the point of not being underwater. the money supply has doubled in 10 years and will go up by 8x over the next 10. thats how

Tue, 10/23/2012 - 19:53 | 2914484 Snoopy the Economist
Snoopy the Economist's picture

Rip: Thanks for your concern but I'm happy with my knowledgebase. The small bounce in housing is just that - a dead cat bounce. Without good paying jobs home prices will not be going any higher - but they will go lower. And teh shadow inventory does matter. Perhaps you should read more.

Mon, 10/22/2012 - 12:31 | 2909815 riphowardkatz
riphowardkatz's picture

What? Commentors here have been claiming you can't reinflate. No way Mish and others say we are headed for deflation

Mon, 10/22/2012 - 12:37 | 2909840 Ljoot
Ljoot's picture

Lather, rinse, repeat.


Mon, 10/22/2012 - 12:39 | 2909845 Zero Govt
Zero Govt's picture

Very Excellent Bill

I can imagine the "Kill Bill" order leaving bubble Bens desk right about now

Mon, 10/22/2012 - 12:49 | 2909858 Floodmaster
Floodmaster's picture

Don't pay more than 3 times the average income of the ZIP code.

Mon, 10/22/2012 - 14:42 | 2910270 dolph9
dolph9's picture

Interesting comments but let's see when Bill Gross is ready to exit bonds entirely.

Keep your eyes on the prize.  The biggest bubble is government bonds, never forget that.  It's where all of these bad debts go to die, either through default or hyperinflation (either way, good for gold, as gold is the reciprocal of trust in the debt markets).

Stocks and real estate are side shows compared to the bond market.


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