Bloomberg Businessweek reports:
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the U.S. should consider “full nationalization” of the mortgage- finance system as the Obama administration plots the revival of a market that was at the center of the 2008 credit crisis.
“To suggest that there’s a large place for private financing in the future of housing finance is unrealistic,” Gross said today at a U.S. Treasury Department conference in Washington. “Government is part of our future. We need a government balance sheet. To suggest that the private market come back in is simply impractical. It won’t work.”
Super-rich bond investor Bill Gross is looking at his
next bailout. Here's
Seeking Alpha on Bill Gross from September 14,2008:
Over the first six months of the year, Gross had moved more than 60% of his fund -- close to $80 billion -- into mortgage debt. What did Gross know that Miller didn’t? He knew that, come what may, mortgage-backed bond holders would have to be bailed out, no matter what... because of the global politics of who else owns that mortgage debt.
Imagine that.
