Gross' current views:
- The Federal Reserve and foreign holders of U.S. Treasuries are fully in control of bond yields, the "bond vigilantes" are not large enough to offset these government influences.
- That leaves it up to the government to be responsible since the market isn't going to be able to move interest rates higher.
- Gross thinks that the Fed needs to focus more on asset prices in addition to inflation.
- Not focusing on asset prices during the tech bubble and housing bubble meant the Fed did not realize the huge damage these bubble can eventually do to the economy.