Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Zero

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  1. PapaG

    PapaG Banned User BANNED

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    Yikes. PIMCO looks to be cashing out of the Treasury Ponzi scheme.

    http://www.zerohedge.com/article/ex...s-total-government-related-holdings-zero-flee

     
    PapaG, Mar 9, 2011
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  2. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    What exactly does this mean, in layman's terms?
     
    BLAZER PROPHET, Mar 9, 2011
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  3. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    In layman's terms, it means somebody is making a bet that the market is going to move in a certain direction.

    That, and that the apocalypse is nigh.

    barfo
     
    barfo, Mar 9, 2011
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  4. EL PRESIDENTE

    EL PRESIDENTE Username Retired in Honor of Lanny.

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    We're fucked. He was in it because the fed was artifically manipulating the economy. It's all going to collapse.

    X
     
    EL PRESIDENTE, Mar 9, 2011
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  5. PapaG

    PapaG Banned User BANNED

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Bill Gross isn't just "somebody", and it looks like he cashed in all of his treasury chips.

    I happen to be opposed to a QE3, simply because all it will do is kick the can down the road a bit further, and make the mess that much more difficult to clean up.
     
    PapaG, Mar 9, 2011
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  6. chris_in_pdx

    chris_in_pdx OLD MAN

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    And just who is going to be around to "clean it up"? Corporate America? Shareholders? I think not.

    http://news.yahoo.com/s/yblog_thelo...kout/jobs-returning-but-good-ones-not-so-much

    In other words, not only is this a jobless recovery, it's also a middle-class killing recovery. Which was probably the idea all along.
     
    chris_in_pdx, Mar 9, 2011
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  7. PapaG

    PapaG Banned User BANNED

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Actually, it's potentially an economy-killing recovery, which is what is discussed in part at zerohedge.

    Playing class warfare and blaming corporate bogeymen is irrelevant to this thread.
     
    PapaG, Mar 9, 2011
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  8. bluefrog

    bluefrog Go Blazers, GO!

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Hurry, get out of the country while you can. There's not a moment to spare! (cue El Presidente's emoticon)
     
    bluefrog, Mar 9, 2011
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  9. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    I know a few people that are deeply knowledgeable of the economy (one ran a multi billion dollar hedge fund) and they are adamant there is going to be a major down turn in 2011.
     
    BLAZER PROPHET, Mar 9, 2011
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  10. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Go back in time and you'll find that every single year, there are some people who are sure the world will end that year.

    barfo
     
    barfo, Mar 9, 2011
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  11. Natebishop3

    Natebishop3 Don't tread on me!

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    But the world IS going to end in 2012... so what's the difference? :dunno:
     
    Natebishop3, Mar 9, 2011
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  12. EL PRESIDENTE

    EL PRESIDENTE Username Retired in Honor of Lanny.

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    we're going to have rampant hyperinflation. all of the commodities have risen sharply ever since QE and QE2. food prices skyrocketing as are oil prices.

    they should have let the faulty systems fail because its still coming, they're just digging the hole deeper.
     
    EL PRESIDENTE, Mar 10, 2011
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  13. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    stockpile precious metals now! the end is coming! oh noes! thave us, thave us! I tawt I taw a puddytat!

    barfo
     
    barfo, Mar 10, 2011
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  14. EL PRESIDENTE

    EL PRESIDENTE Username Retired in Honor of Lanny.

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    metals are overpriced. :NOTMARIS:

    short the US Dollar.
     
    EL PRESIDENTE, Mar 10, 2011
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  15. EL PRESIDENTE

    EL PRESIDENTE Username Retired in Honor of Lanny.

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    few days ago:

    http://www.businessinsider.com/bill...rap-us-living-standards-doomed-to-fail-2011-3

     
    EL PRESIDENTE, Mar 10, 2011
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  16. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Who do you think shareholders are? For the most part, I think they're pension funds.

    Anyhow, the obvious reason to get out of govt. bonds is if you think the interest rates are going up. If you're stuck in low yield bonds, you sacrifice a good chunk of your principal for liquidity. For example:

    You buy a $100 bond paying 10% interest. You actually pay $90 and when the bond matures you get $100, making $10. Meanwhile, new bonds start paying 20% interest. People are paying $80 to get $100 at maturity. If you want to sell your bond you paid $90 for, you have to sell it for $80 or nobody will buy it. You just lost $10. The numbers are for illustrative purposes.

    Why will bonds have to pay higher interest? The govt. can't keep enticing people to buy at low rates, the buyers eventually (sooner than later) have the govt. over a barrel - pay us more interest or we won't buy, and the govt. is addicted to borrowed money. I mean, why buy govt. bonds paying 1% interest when you can make 2% in capital gains buying stock in Johnson and Johnson?

    This was the picture in early 2009, just after Obama took office. Since then, the reality has been $1.6T deficits in '10, '11, and looking like '12. To put it in perspective, the govt. borrowed more in the month of February than it did the entire year in '07.

    [​IMG]
     
    Denny Crane, Mar 10, 2011
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  17. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    How many of these people manage the world's largest bond fund?

     
    Denny Crane, Mar 10, 2011
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  18. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    That's very true. There's always those who also say the opposite.
     
    BLAZER PROPHET, Mar 10, 2011
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  19. maxiep

    maxiep RIP Dr. Jack

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    When we raised money for our new fund last year, one of our arguments that investors told us they found most compelling was the argument that even if commercial real estate stayed underpriced (compared to historic norms), it was a hedge against inflation.
     
    maxiep, Mar 10, 2011
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  20. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

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    Re: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Ze

    Those who say the opposite have a much better track record.

    barfo
     
    barfo, Mar 10, 2011
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