Thursday, Aug 23, 2007
"Save us, Mr Bush"
Telegraph: Bush should bail out sub-prime industry
Mr Gross (managing director or Pimco urged Bush to "write some cheques" to "prevent destructive housing deflation". He warned that house prices in the US could drop by as much as 10% which would amount to throwing 2,000,000 homeowners to the wolves in 2007.
Posted by su @ 05:24 PM (745 views) Add Comment
6 Comments
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1. whiteknight said...
More bailout nonsense.
This tells you how bad it really is.
It would be a terrible cynic who would suggest that Mr Gross is more worried about his own fund than those people who would be thrown "to the wolves.".
2. whiteknight said...
Such a fall in house prices would represent asset-price deflation not seen since the Great Depression, he explained.
Great Depression. This is a more appropriate understanding. We have been hearing from most people thus far comparing it to problems within the last 20 - 30 years.
It is nothing like we have seen in that timescale.
3. C'mon Correction said...
I like the - 'could drop by as much as 10%'. That's a bit optimistic isn't it? The spin to put things in a not very very bad light is quite amusing to me.
4. Alan said...
Unashamed self interest, Mr Gross.
5. su said...
While admitting that nobody knows exactly how many "Waldo's" (bad loans & defaulting subprimes of US mortgage market) might emerge over the next few years, Gross reckons 100 - 200 billion dollars worth is a reasonable estimate. (see "Where's Waldo" link within the above article).
Does anyone know roughly how much loss has been acknowledged so far?
6. Vicmac64 said...
Gross by name Gross by nature - yeah this is the attitude the taxpayer should bail him out - let him put his own hand in his own pocket first - then go cap in hand.