I rarely post news articles, but this one had me thinking what a complete TOOL Gross is.
http://biz.yahoo.com/cnnm/070823/082307_gross_homeowners.html?.v=1
http://biz.yahoo.com/cnnm/070823/082307_gross_homeowners.html?.v=1
PIMCO's Bill Gross says Bush should bail out homeowners, markets.
- Thread starter Ivanovich
- Start date
He knows a bit more than you do, and you may have a different opinion, but you better respect him. Is it a proper thing to do? Probably not. But, does he make a case on precedent? Absolutely.
Actually, PIMCO has no subprime exposure. Other asset managers have been buying these CDOs, and ABS for yield, but Gross has steared clear as he's foreseen this for years. His opinion is based partly on him being an American citizen, and also thinking that if real estate drops 10%, then we are headed for a recession, equities will plummet, and on and on. If we bailed out LTCM, Chrysler, and others to avoid such a recession, wouldnt it make sense (to use that same logic) to bail out 2 million homeowners?
Do I agree with this? No. It only prolongs the credit bubble we are in.
Whoever conceived subprime ("subcrime"?) CDO is a genius. They tie themselves together with the interest of homeowners and make a chunk out of the housing bull market for a decade without buying or selling a single home.
When they lose money they can simply ask the government to bail them out with a straight face saying the government should bail out "the american homeowners".
Gee... I guess these guys just never lose any money don't they.
When they lose money they can simply ask the government to bail them out with a straight face saying the government should bail out "the american homeowners".
Gee... I guess these guys just never lose any money don't they.
the only thing more annoying than a socialist who's asking for the government to bail out idiots who bought homes they couldn't afford, is someone who asks himself questions then answers them himself.