Bloomberg reports:
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the U.S. should consider “full nationalization” of the mortgage- finance system as the Obama administration plots the revival of a market that was at the center of the 2008 credit crisis.Fortunately, it does appear that not even Geithner is contemplating such a move.
“To suggest that there’s a large place for private financing in the future of housing finance is unrealistic,” Gross said today at a U.S. Treasury Department conference in Washington. “Government is part of our future. We need a government balance sheet. To suggest that the private market come back in is simply impractical. It won’t work.”
Geithner said, according to Bloomberg, that the government must reduce its role in housing markets and ensure Fannie Mae and Freddie Mac, the mortgage-finance companies operating under U.S. conservatorship, won’t require future bailouts.
But with Elizabeth Warren floating around Washington, the Gross comments are downright scary. I can see Warren leading a charge for just such government control of the housing finance market, from the perch at the top of the CFPB.
Bill Gross wants to see America's private parts a la the Fed's very own housing Full Monty.
ReplyDeleteOne can only assume from Mr. Gross' comments that either he has some kind of self serving interest behind such and idea or he is incredibly stupid.
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ReplyDeleteGross is a socialist pig like the rest. Were going to need a lot of rope when this is all said and done...a lot of rope indeed.
ReplyDelete"Well we aren't buying them anymore" - Bill Gross when asked yesterday about his purchases of MBS securities. Mayhaps it's because you are packed to the gills with them already Mr. Gross?
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