http://www.cnbc.com/id/27053854
"We believe that the Federal Reserve must now act as a clearing house, guaranteeing that institutional transactions clear (and investors receive) their Big Macs at the second window," Gross wrote.
"They must also take another bold step: outright purchases of commercial paper." Interest rate cuts are also in order, Gross said.
My take and I have been telling folks is a CP clearinghouse will fix this real quick. It is a simple and taxpayer neutral solution. Glad that Bill Gross is pushing for this. This is what we need now. Better to use the right tool for the problem instead of a sledgehammer.
"We believe that the Federal Reserve must now act as a clearing house, guaranteeing that institutional transactions clear (and investors receive) their Big Macs at the second window," Gross wrote.
"They must also take another bold step: outright purchases of commercial paper." Interest rate cuts are also in order, Gross said.
My take and I have been telling folks is a CP clearinghouse will fix this real quick. It is a simple and taxpayer neutral solution. Glad that Bill Gross is pushing for this. This is what we need now. Better to use the right tool for the problem instead of a sledgehammer.