Bill Gross, king of the bond industry and head of PIMCO, says that the recession has begun. He has been begging the Fed to cut interest rates. Perhaps he secretly hopes that a downturn will prove that he was right all along. The Fed was too slow and did not take rates down fast enough, at least according to Gross.
In an interview with the FT , Gross said "If I had to be bold I’d say we began a recession in December."
Gross may be right. But, interest rates and the collapse of banks are only some of the problem. Fuel and food price inflation are also taking their toll
The man was unkind to hedge funds. A hedge fund, he said, was "an unregulated bank. A bank isn’t a con but a bank is a regulated entity. A hedge fund is not . . . it’s been a con on the government in terms of their unwillingness to regulate the industry.
Gross may be smart, but he does seem to have a gift for making comments that have the appearance of looking into the rear view mirror of recent history.
Douglas A. McIntyre
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