STRATEGY BEYOND THE BAILOUT OUTRAGES,
FOR PROFIT AND PROTECTION
Before The Fannie Mae and Freddie Mac Bailout, Bill Gross, Investment Head of Pimco, stated:
“If we are to prevent a continuing asset and debt liquidation of near historic
proportions, we will require policies that open up the balance sheet of the
U.S. Treasury not only to Freddie and Fannie but to Mom and Pop on
Main Street U.S.A….via subsidized home loans issued by the FHA and
other government institutions,” Gross says in his current note to investors.
(emphasis added)
Gross: U.S. Must Save Mortgage Holders or Face Disaster,
Newsmax.com, Thursday, September 4, 2008
And after The Bailout we note:
“The Bill Gross-managed Pimco Total Return Fund reaped a $1.7 billion
payday following the US government takeover of home loan giants
Fannie Mae and Freddie Mac.
While shareholders in Fannie and Freddie suffered deep losses, the world’s
biggest bond fund saw its highest ever one-day rise against its benchmark
index on Monday, benefiting from the bet made by Mr. Gross on mortgage
bonds issued by the agencies.”
Bailout Hands Pimco $1.7 Billion Payday,
Deborah Brewster, Financial Times, London,
Tuesday, September 9, 008
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