The Anglo Saxon financial Euro-sceptic band of alarmist voices are getting louder and louder. They reported that Pimco, the world's biggest bond fund, shrugged off last night's vote of confidence in the Greek government, warning that it expects Greece and other European economies to default on their debts to resolve their problems.
How serious can one take this statement from Pimco? Business Insider noted recently : "Bill Gross (aka the bond king) is starting to get a little desperate. Several months ago we asked, Did PIMCO call a bottom in Treasuries? Since then USTs have gone up — and yields have fallen substantially.
This made the bond king look bad — especially when it came out that PIMCO had a net short position (later clarified to be via swaps). Either way, though, Gross has been pounding the table for how lousy Treasuries are. As USTs went up, seemingly mocking the king, he pounded the table even harder. This week, he really started stretching it."
Pimco and its duo Bill Gross and Mohamed El-Erian who have been pushing their, what they call “new normal” nonsense now for the past 3 years and should be taken with a grain of salt.
EU-Digest
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