Bill Gross's rant against Congress

Frankly the debt ceiling talk doesn't make sense to me. All it means is that the Treasury can't issue more bonds that pay zero percent. Regardless of the amount of debt Treasury issues we are running a huge trade deficit with our trading partner. All a treasury bond does is provide a mechanism to sop up excess cash. The Chinese can just hold cash earning zero.

i think hes been short treasuries for a while too.

From what I hear he's not short treasuries, but just underweight. taking his exposure in spread products.

At least not one of the people ranting Obama is comparable to Hitler.

I think the short treasuries was a euphemism. From what I heard he was just underweight, thinking spread products offered more value, which is normally the case as long as defaults don't come into play. The additional mistake is that spread products don't usually rally as strongy as Treasuries.

You want to own spread products more in a flat or slightly rising environment(again as long as credit quality isn't a big issue).

>>>You want to own spread products more in a flat or slightly rising environment

humm. let's think about that statement...