A mere fortnight ago Bill Gross, who manages the world’s largest bond fund PIMCO, was singing the praises of the Treasury Department’s newly-unveiled Public Private Investment Program in the media, which the media in turn credited for the stock market rally that immediately followed. But in any event, Gross’s endorsement of the plan hardly a surprise, since 1. PIMCO holds more than $118 billion in mortgage-backed securities 2. including one fund that has lost 34% of its value since its 2007 inception and 3. oh yeah, the plan was in part Bill Gross’s idea. By the time the week was out PIMCO was being dubbed the fourth branch of government.
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=144069