Bill Gross

Can You Solve This Riddle?

If we are going to simply print money and hand it out with no expectation or means to pay it back, why would we not print enough to make everyone wealthy? Socialism is not about equality, quite the opposite. If it were, The ECB would be discussing limitless debit cards paid for by the Central Banks. Socialism is a mechanism to subsidize profits and cement control of the masses.

Even Bill Gross Misunderstands "Free-Market Capitalism"

We have deviated so far from free markets at this point that even the top financial minds no longer have any understanding of what is meant by capitalism. It must be true, for anyone who understands capitalism could never have published such a letter. The logic in Mr. Gross’s argument is beyond invalid, in fact, it is so ludicrous it borders on insane. We mean this quite literally...

Peak Economy - The Failure Of Fed Policy Exposed In 5 Painful P&G Charts

What is taking place in the macro economy is a true demand death spiral and this can be seen very clearly by using Proctor & Gamble’s microeconomic context as a representative model. If one steps back and simply looks at the accuracy of the world’s prominent PhD economists and market pros’ predictions over the past 7 years one can’t help but shake one’s head. And we believe investors have become wise to their ignorance.  We’ve seen a record 15 consecutive weeks of net selling of equities despite these expert pundits continuing on in their attempt to deceive investors into believing we are just one or two quarters away from that (now) proverbial recovery.

Frontrunning: May 9

  • China stocks plunge again as hopes for economic recovery fade (Reuters)
  • European Stock Gains Defy China Data That Hurt Metals; Oil Rises (BBG)
  • Yen falls after Tokyo warning (Reuters)
  • Soros Chart Signals BOJ Bond Buying Already Enough to Weaken Yen (BBG)
  • Dollar Jump Catches Traders Short in One More Currency Calamity (BBG)
  • Even China's Party Mouthpiece Is Warning About Debt (BBG)

"Bankers Will Choose To Fly Instead Of Die" - Why Bill Gross Thinks Helicopter Money Is Imminent

"Money for free! Well not exactly. The Piper that has to be paid will likely be paid for in the form of higher inflation, but that of course is what the central banks claim they want. What they don’t want is to be messed with and to become a government agency by proxy, but that may just be the price they will pay for a civilized society that is quickly becoming less civilized due to robotization. There is a rude end to flying helicopters, but the alternative is an immediate visit to austerity rehab and an extended recession. I suspect politicians and central bankers will choose to fly, instead of die."

"The Damage Could Be Massive" - How Central Banks Trapped The World In Bonds

Yields on $7.8 trillion of government bonds have been driven below zero by worries over global growth, forcing investors looking for income to flood into debt with maturities of as long as 100 years. Worse still, as Bloomberg reports, central banks’ policy is exacerbating matters, as the unprecedented debt purchases to spur their economies have soaked up supply and left would-be buyers with few options. This has driven the 'duration' - or risk sensitivity - of the bond market to a record high, meaning, as one CIO exclaimed, even with a small increase in rates "the positions are so huge that the damage can be massive... People are complacent."

Bill Gross Unleashes Tweetstorm On Five "Investor Delusions" Soon To Be Exposed

In what has so far been a strange day, in which one headline by an "anonymous diplomatic source" and unconfirmed by the Russian energy ministry has pushed stocks from red on the day back to highs for the year, the latest surprise came from Bill Gross who moments ago broke into a "tweetstorm" to lay out what he see as the latest set of investor delusions.

Bill Gross : "Negative Rates Destroy Savers, The Bedrock Of Capitalism", Larry Fink Agrees

... consider mom and pop and other people who read Barron’s. They are saving for retirement and to put their kids through college. They might have depended on a historic 8%-like return from stocks and bonds. Well, sorry. When interest rates get to zero—and that isn’t the endpoint; they could go negative—savers are destroyed. And savers are the bedrock of capitalism. Savers allow investment, and investment produces growth.

Frontrunning: April 5

  • Panama Papers: Biggest Banks Are Top Users of Offshore Services (WSJ)
  • Panama Papers probes opened, China limits access to news on leaks (Reuters)
  • Credit Suisse CEO Distances Bank From ‘Panama Papers’ (WSJ)
  • Fed's Evans says market more pessimistic on U.S. rate hikes (Reuters)
  • IMF's Lagarde Says Risks to Weak Global Recovery Are Increasing (BBG)