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Bill Gross: "All Risk Asset Prices Artificially High"

Submitted by Tyler Durden on 10/29/2013 11:38 -0400

First it was JPMorgan, now it is PIMCO's turn.

Gross: All risk asset prices artificially high. When won’t they be? When they don’t produce growth in real economy. Is 2% GDP enough?

— PIMCO (@PIMCO) October 29, 2013

Alas, by now everyone but the Fed realizes there is a bubble in practically every asset class. As such, Gross' tweeter time may be better spent engaging in smack talk with Carl Icahn: it is far more entertaining and engaging.

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Tue, 10/29/2013 - 11:41 | 4101502 FieldingMellish

Bonds are the riskiest of assets. Poor, rich Bill.

Tue, 10/29/2013 - 11:42 | 4101509 Downtoolong

Exactly

P.S. Bonds are now a risk asset too.

Bill

Tue, 10/29/2013 - 11:48 | 4101537 Manthong

This concept of "risk" confuses and infuriates us!

Tue, 10/29/2013 - 12:04 | 4101613 LawsofPhysics

Please, when there is no market for true price discovery, there is nothing but risk. Got PMs?

Tue, 10/29/2013 - 12:30 | 4101724 boogerbently

I love this.

You don't need complex algorhithms or multi million $$$ HFT servers to manipulate the markets.

All you need is a twitter account.

Tue, 10/29/2013 - 12:47 | 4101802 NotApplicable

Thank God for Storify!

http://storify.com/

Tue, 10/29/2013 - 13:45 | 4102083 rubiconsolutions

Apparently, stating the obvious gets you column inches.

"The sky is blue today..."

Tue, 10/29/2013 - 12:11 | 4101645 Hippocratic Oaf

All hi-yield bonds should be selling off any minute now.

waiting

Tue, 10/29/2013 - 11:42 | 4101504 RSloane

"When won't there be?" - When the economy is sunk into such a deep depression that even the MSM can't ignore it. Until then, upwards through vapor.

Tue, 10/29/2013 - 11:42 | 4101507 gjp

Ummm, when exactly did inflated assets produce growth in the real economy, Bill? Did I miss something?

I think Bill has a Twitter problem. I wonder if he's going in on the IPO.

Tue, 10/29/2013 - 11:56 | 4101583 jcaz

Risk assets produce growth, Bill?

I must have missed that class......

Tue, 10/29/2013 - 11:44 | 4101513 Dr. Engali

Risk assets are artificially high, but buy some five year treasuries because I said so...What a fuckwad.

Tue, 10/29/2013 - 12:36 | 4101761 derek_vineyard

5 year is yielding 1.28

what a deal

im all in

thanks bill

Tue, 10/29/2013 - 11:45 | 4101517 Yen Cross

The "Crypt Keeper" has spoken... Now go climb back in your coffin Bill.

Tue, 10/29/2013 - 11:45 | 4101520 firstdivision

@PIMCO, no they're not. I bet you 2 QEs that Ben/Yellen can artificially inflate prices higher.

Tue, 10/29/2013 - 12:25 | 4101695 rubiconsolutions

@firstdivision. Agreed - See: Zimbabwe

Tue, 10/29/2013 - 11:46 | 4101531 ReturnFreeRisk

this is an important paper. Coming from liberal economists at Berkley, they finally figured out WHY THE FED POLICY IS NOT WORKING.

http://www.econbrowser.com/archives/2013/10/why_isnt_inflat.html

http://emlab.berkeley.edu/~ygorodni/CG_missing_disinflation.pdf

Tue, 10/29/2013 - 11:53 | 4101546 Dr. Engali

If it took them this long to figure out what we told them four years ago, then it can't be that important.

Edit " the breakdown started in the ealy 70s"

Hmmmm what happened in the 70s? Let's ask Nixon:

http://www.youtube.com/watch?v=vNAvsrY9vR4

Tue, 10/29/2013 - 11:51 | 4101554 whateverittakes

The multiplier effect of fewer shares outstanding is really going to be a bitch on the way down when the recent soso earnings start to turn negative

Tue, 10/29/2013 - 11:52 | 4101559 Iam Yue2

SAGE.

Tue, 10/29/2013 - 11:53 | 4101564 fooshorter

Jesus Tap Dancing Christ! We are Saved! The bond King himself has come down and blessed us with his knowledge! OO YE we are not worthy O YAA Save us from ourselves!!!

Tue, 10/29/2013 - 11:55 | 4101575 Zer0head

speaking of risk

the 270,000 people in San Diego, California - who are on Food Stamps (yes that beautiful paradise on the pacific in sunny Southern California, San Diego has more than a quarter million people on food stamps )

and they are going to get their benefits cut

http://www.kpbs.org/news/2013/oct/29/food-stamp-cuts-hit-270000-san-dieg...

Tue, 10/29/2013 - 12:04 | 4101602 the grateful un...