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Thursday, March 10, 2011

Big Guy Bails

Watch the above video from Denninger with PIMCO bond king Bill Gross explaining his take on the American economy.

Then read these two Tyler Durden/Zero Hedge pieces on how Gross and company have ejected from US government debt:

Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Zero, Flees To Cash - No QE3?

Advice On How To Trade Gross' Treasury Dump From A Former PIMCO Employee

Quote from the latter:

...Another thing to consider is that because of their sheer size in the fixed income market, PIMCO is a market mover no matter what they do. So simply not being in the US Treasury market means a huge buyer is missing and rates will rise simply due to this supply/demand imbalance so to some extent, PIMCO can make interest rates go up all by themselves by simply not buying. Very few organizations on the planet can exert this kind of pressure on rates outside of central banks...

Add in Carl Icahn's cash-back action yesterday, along with the continuing rumbles about the tax-receipt-dependent municipal bond market, and you have to ask:

What do these guys know about what's coming that Joe Sixpack doesn't?

Likely answer:

A whole lot.

Got preps?


Anonymous Anonymous said...

Read a piece the other day about a major financial company looking @ leaving England to relocate their HQ somewhere in Asia.

The game is almost over, ladies and gents.


March 10, 2011 at 7:08 AM  

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