Serious Question: Is PIMCO Actively Trying To Freak Out European Markets?

Business Insider ^ | 05/16/10 | Joe Weisenthal

[TigerLikesRooster]

Serious Question: Is PIMCO Actively Trying To Freak Out European Markets?

Joe Weisenthal | May. 16, 2010, 10:02 AM | 184 | comment 2

We have to admit, we're stunned by the extent to which PIMCO folks are talking down the prospects of Europe pulling through its current crisis.

It was reported by FT that the gigantic bond fund had dumped its Greek and Portuguese debt, then in the same article, portfolio manager Ramin Toloui is quoted as saying that ECB bond market intervention could be "backfiring".

Strong words.

Then yesterday, the top dog Mohammad El-Erian wrote another guest post for FT Alphaville about the shock & awe already waring off, and he calls on Europe to cut it out with the easy solutions:

Yes, it is not easy to change track, especially after last weekend’s protracted negotiations and compromises in Brussels and Frankfurt; and, yes, the risks of immediate disruptions are material. Yet it is the right thing to do for the longer-term health of Europe and the global economy.

Let us hope that courage and vision , rather than short-term expediency, prevail.

[TigerLikesRooster]

P!

[Old Retired Army Guy]

Sounds to me like they might have a vested interest in the Euro. disappearing.

[dennisw]

All these big guys talk to each other and conspire and lie to each other. My bet is Pimco’s Gross and Al-Arian are telling their bond buddies “Lets screw (short) Greece and the € together”

“Bond vigilantes” is the term for the guys really big on shorting particular bonds at particular times and pretty much driving a company or currency or nation out of business. Can be done via credit default swaps. I don’t think they have the cojones to massively short California debt because Congress will lower the boom on them and vilify them

[VRWC For Truth]

The capitalists are going to crush these Socialist govt's as usual. The US Fed Reserve is propping up the whole world economy by printing money aka as US taxpayer IOUs. In the end the Fed will fold its hand, it's a loser. DC is burning like Rome. The house of cards is falling.

Socialism fails again. My beeber is stuned. < /sarcasm >

[SteveAustin]

I think this is a good post. The guys at Pimco, i.e Bill Gross, El-Arian, McCulley have a lock on the CNBC megaphone.

I’ve watched them for years use the media to prognosticate about market trends that if realized, would also benefit their trading positions.

There is nothing wrong with this. But for some reason the lapdog part of the financial media never calls these guys out for it. There should be a gigantic banner running on the bottom of the CNBC screen out-ling the PIMCO positions every time one of these guys is brought on.

[bruinbirdman]

" There should be a gigantic banner running on the bottom of the CNBC screen out-ling the PIMCO positions every time one of these guys is brought on."

Many times a day the banner reads "Brought to you by Pimco".

Gross lets the world know plenty in print and TV the direction Pimco is moving.

It is no secret that capitalist establishments are at war with collectivists.

Although Merkel says it is the duty of governments to buck the hedge funds (market forces), she and all the other socialist leaders know the collectivist trend is doomed. It is just a matter of time. In the meanwhile, they are obligated to placate the socialist voters just to maintain a semblance of social order.

yitbos

[Freedom_Is_Not_Free]

You mean PIMPCO lies? Say it ain’t so. Next, you will be telling me that CNBC hosts are a bunch of cheerleaders to get us in the markets so PIMPCO and the others can skim the cream off our wallets. I thought there was a 100% level playing field for the little guy! (Do I need a Sarc?)