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A Theory About Bill Gross

So apparently Bill Gross this morning

that Ben Bernanke will announce a new round of monetary easing at the annual shindig in Jackson Hole.

Source: Twitter

Why is Gross so certain we'll get QE3?

Well, obviously, he didn't elaborate on Twitter. But I have a theory.

Gross famously predicted a massive sell-off in Treasurys once QE2 ended. That hasn't happened.

I think Gross figures this must be the market signaling the Fed isn't really out of the easing game yet. If that were true, his prediction that the end of easing would trigger a sell-off wouldn't have been proving wrong because the end of easing hasn't yet occurred.

(Hat Tip: BI.)


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