Bill Gross' assertion that Treasury bonds could get burnt to a crisp thanks to massive...

|By:, SA News Editor

Bill Gross' assertion that Treasury bonds could get burnt to a crisp thanks to massive government deficits is nonsense, writes David Schawel. This doesn't mean there isn't plenty of downside (without comparable upside) for bond indexers (AGG) - there is, he says, thanks to the distorting effects of the Fed's Treasury and MBS purchases.