![]()
- We're Not Greece: Italian Prime Minister Monti
- Private Homebuilders in the US: Dead Men Walking
- Dividend Payout Could Hit Record Amount This Year
- With Investors So Bullish, Stock Pullback Must Be Ahead
- Is Bill Gross, PIMCO's Bond King, Losing His Touch?
- Why Saving Greece Could Destroy the World
- Apple’s Record Run: $500 Is a Magic Number
- Housing Still Hurting Consumers, Economy: Bernanke
- Get Ready for $5 Gas This Year: Ex-Shell CEO
MOST SHARED
- US Stocks Avoid Closing Down Over 1%, Again
- When Love and the Fed Collide
- How Rescuing Greece Could Destroy the World
- Commodities Next Week: Why Gas Prices Are Heading Toward $5 Per Gallon
- 2012: The Year of the Stock Picker
- Get Ready for $5 Gas This Year: Ex-Shell CEO
- Pauley Perrette's Southern Bakery a Hit in Manhattan
- Private Homebuilders: Dead Men Walking
- Why Greece Will Default, Leave the Euro Zone
- Apple’s Record Run: $500 Is a Magic Number
MOST POPULAR
HOT ON FACEBOOK
Pimco's Gross: Rates To Hold Steady Or Decline More
As the Federal Reserve slashed a key interest rate by half a point on Wednesday, Pimco's Bill Gross said he expects rates to hold or decline to 1 percent.
Gross also said bond investors want to buy what the government is buying.
"The Treasury is buying agency mortgages in the secondary market as well as bank capital preferred stocks via the TARP," he said.
The government may extend the reach to subprime mortgages and insurance and auto companies, Gross said.
Companies like Ford Motor [F
Loading...
()
] and General Motors [GM
Loading...
()
], for instance, are attractive, he said. (See accompanying video for more.)
Meanwhile, government foreclosure relief programs are a question of fairness, he said.
“It’s not a good thing for the government to write checks in the trillions of dollars; we will have inflation,” said Gross. “But, it’s certainly a fair thing and it balances out Main Street and Wall Street.”
Gross also pointed out the Fed’s concern that weakened global economies will hurt demand for U.S. exports.
“It basically says not just the United States but the whole world has a problem here,” he said. “Not only the U.S. but other central banks must go low and stay low.”









