Finan¢ial $en$e: What does the "Big Money" think about Quantitative Easing?

October 30, 2010

What does the "Big Money" think about Quantitative Easing?

Bill Gross, one of the most prolific money managers of our time and Managing Director at PIMCO, provides his investment outlook: http://www.pimco.com/Pages/RunTurkeyRun.aspx . Why is he reluctantly supportive of QE-II? His firm and their clients own billions of dollars worth of Treasuries. He doesn't have any choice. But realize this, he knows a Ponzi scheme when he sees one and he also thinks that PIMCO won't be the last entity holding bonds when it all comes crashing down. Be very sad for people who are in Fixed Income investments at that time (lots of retirees will be in this number).

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David Keepes aka Dave K. is the writer for this blog titled "Finan¢ial $en$e". He is NOT a registered investment adviser nor does he work in any capacity for an SEC-registered, or any other, investment advisory firm. He writes in an educational capacity and urges and expects anyone who reads his posts and comments to not rely on them for accuracy, and for any reader to perform their own due diligence in regards to all investment and retirement matters. David holds a BA in Economics from the University of Illinois and an MBA from Eastern Illinois University. He is also a permanent Certified Cash Manager since 1995. He lives in Carrollton, Texas, with his wife and one child. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

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