Newport Beach Financial Whiz Warns of 'Mini Depression' Unless Trillions Spent
Actually, at $900 billion, Obama's proposed stimulus package
is just shy of a trillion. The Federal Reserve awarded PIMCO a contract in December as one of
the four managers of a $500 billion program to purchase
The 64-year-old billionaire manages the world's biggest bond fund, the $132 billion Total Return Fund, which gained 4.8 percent last year and has outperformed 99 percent of its peers over the past five years, according to Bloomberg's data, which shows the average government and corporate bond fund lost 8 percent in 2008.
"Gross is worth heeding," writes money manager and investment editor Eric Roseman on his Roseman Eruptions blog on The Soverign Society ("Feel the Freedom of Total Wealth") website. "He is the dean of bond investing in the United
States for more than three decades and has made some prescient calls on
interest rates and other macroeconomic trends."
But Jeff Poor (no, I'm not making that up) of the Business & Media Institute ("Advancing the Culture of Free Enterprise in America"), accuses Gross of sensationalism. "Bill Gross doesn't have a grasp of how much 'trillions' are," Poor writes on his own site.
"Although Gross is one of the most successful bond traders and fund managers in the private sector, this isn't the first time he's appeared in the financial news and produced a sensationalized headlines," Poor adds. "On Aug. 23, 2007, Gross called for a full fledged housing bailout."