I cannot write Doom constantly. It saps my strength. Besides, I've been waiting for the panic to amp up in the financial markets. The manic-depressive gyrations of late are just more prelude for the Symphony of Doom.
Here's another peek of the epic proportions of Doom we're still facing:
U.S. Must Buy Assets to Prevent `Tsunami,' Gross Says (Update3)
Sept. 4 (Bloomberg) -- The U.S. government needs to start using more of its money to support markets to stem a burgeoning "financial tsunami," according to Bill Gross, manager of the world's biggest bond fund.
Banks, securities firms and hedge funds are dumping assets, driving down prices of bonds, real estate, stocks and commodities, Gross, co-chief investment officer of Newport Beach, California-based Pacific Investment Management Co., said in commentary posted on the firm's Web site today.
"Unchecked, it can turn a campfire into a forest fire, a mild asset bear market into a destructive financial tsunami," Gross said. "If we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury."
The government needs to replace private investors who either don't have the money to buy new assets or have been burned by losses, Gross said. Pimco, sovereign wealth funds and central banks are reluctant to fund financial firms after losses on investments they made to support the companies, Gross said. The world's biggest banks and brokers have raised $364.4 billion in new capital after more than $500 billion in writedowns and credit losses since the beginning of last year.
Emphasis added by me.
I bet last night this guy was watching the Republican National Convention and cheering his team.
Gotta love these Socialist Capitalists: Make the failure all public but the profits all private.
I still see things unraveling for real and in a way that cannot be ignored before the November election.
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