In his October newsletter to clients of Pacific Investment Management Company (PIMCO), founder Bill Gross summarized the coming disaster that faces the country, and noted that “only gold and real assets would thrive…”
Gross manages the world’s largest bond fund along with CEO Mohamed El-Erian, with nearly $2 trillion of assets under management. His clients include individual retirees, pension plans, educational institutions, foundations, and endowments, each seeking safety of principal along with reasonable returns. Accordingly he must temper his words not to frighten away the very people he serves. But he’s courageous enough to tell the truth.
Federal Reserve Chairman Ben Bernanke said in an October 1 speech that his U.S. central bank would copy Japanese economic policy to get the U.S. economy moving, despite the fact that the Japanese economy hasn't seen significant economic growth since the 1980s.
In a speech to Arab leaders at the Waldorf Astoria Hotel in New York on Friday, September 28, Secretary of State Hillary Clinton highlighted the economic casualties of intrusive regulations, contending that less government involvement in the economy is necessary because “too many people still can’t find jobs” in countries like Libya, Egypt, and Tunisia.
The hyperbole surrounding the White House's announcement yesterday of much higher fuel economy mandates is in sharp contrast to what consumers really want.
Federal Reserve Chairman Ben Bernanke is expected to give his annual Jackson Hole speech on August 31 while the world waits in anticipation. They are likely to be disappointed.
In past years, the invitation-only event hosted by the Kansas City Fed in Jackson Hole, Wyoming, has been an opportunity for Bernanke to suggest future Fed policy actions. In 2010 he said that a second round of stimulus — called QE2 for Quantitative Easing Round Two — was likely, and in November the Fed began its purchase of another $600 billion of long-term debt securities.
Since then little has changed: Unemployment remains significantly above eight percent, the housing market remains largely moribund, gross domestic product remains barely positive, and consumer confidence is waning.