User 68127

Bill Gross: Talk of Rate Hikes is 'Comical'

Raising rates in a recession? It all depends upon your starting point. If you recall that the Fed started cutting last fall at 5.25%, then short rates could easily go higher while still being below that level.

Snugging up the short rate might help contain inflation, benefit the dollar and further ease pressure from high energy prices.

Furthermore, there is a credit crunch. That mean loans are NOT AVAILABLE at low rates to consumers and businesses, if at all. Since no lending is occurrring at 2% anyway, what does it hurt to bump it up to a realistic market rate? It only hurts the big money cronies at the I-banks and commercial banks, which is why it is not being done. The benefit of low rates is being "privatized" while the detrimental effect--rising food and commodity prices--is being socialized.

Bill Gross: Talk of Rate Hikes is 'Comical'

Bill Gross is "comical." However, we do seem to be inching closer to his forecast of 5000 on the Dow made about 4000 points lower than current levels!

As usual he is talking his own positions. If he knows that the government is going to bail Fannie and Freddie due to the size and connections that his firm has, or its hiring of Greenspan, then more power to him. Just don't call him a great investor. He is gaming the political system at the expense of the little guy.

Several Firms Come to Defense of Fannie, Freddie

Is it just a coincidence that the comments on these stocks appear in RED INK?

Fannie Mae - Or May Not

The government is speculating with taxpayer dollars. FNM is nothing more than a very risky call option at this point. If housing recovers, it could see huge gains. If not, shareholders could lose it all. Totally irresponsible on the part of government, but then, they are scared and trying to prop this thing up, in additional to all being on the FNM/FRE payroll...