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PIMCO's Bill Gross - Central Banks Are in the "Driver's Seat"

February 22, 2013 | About:
CanadianValue

CanadianValue

210 followers
Bill Gross was on CNBC to dissect the noises coming out of the Federal Reserve. Like the investing greats of years gone by, Gross first shares his thoughts with a "tweet" and then appears on CNBC to explain further what the tweet means.

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.



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CanadianValue
http://valueinvestorcanada.blogspot.com/

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