Bill Gross (BOND) weighs in on the debate following the FOMC minutes, saying Pimco...

Bill Gross (BONDweighs in on the debate following the FOMC minutes, saying Pimco estimates January 2014 as being the end date for QE. As for the stuffed balance sheet: "(The) Fed will never sell what they now own."
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Comments (2)
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    They'll sell it eventually - as the QE funds make their way into the economy, thus causing inflation, the value of the Fed's port will increase at which time the Fed will start lightening up imo.
    21 Feb 2013, 01:29 PM Reply Like
  • 1mp1r3t4
    , contributor
    Comments (327) | Send Message
    Unless someone very high up at the Fed loses his mind, they will not sell. It's so much, the market would get flooded with paper and as most well know, too much inventory cheapens the product. If the paper loses value, the "full faith and credit" of the issuer comes into question and chaos could ensue. Chaos cannot be controlled and its outcome is generally unpredictable and unpleasant. They'll hold on as the Chinese and the Japanese must hold on to prevent nefarious outcomes. It's way too much paper to attempt to sell it consistently without attracting attention and triggering negative consequences for the country and for the world as we know it. They'll avoid rocking the boat at all costs.
    21 Feb 2013, 04:31 PM Reply Like
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