And he got Bernanke to help too...
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Greenspan Helped Pimco Make Billions, Gross Says (Update3)
bloomberg.com
May 21 (Bloomberg) -- Alan Greenspan, the former Federal Reserve chairman, has helped Pacific Investment Management Co. make ``billions of dollars'' in his role as a consultant, said Bill Gross, the bond manager's co-chief investment officer.
During a 30-minute discussion on banks several months before the global credit crisis, Greenspan's ``brilliance in terms of forecasting the potential for exactly what happened was a big money saver for us,'' Gross, who runs the world's largest bond fund, said yesterday at a conference organized by the Asia Society in Los Angeles. ``He's made and saved billions of dollars for Pimco already.''
Ben S. Bernanke, Greenspan's successor as head of the Fed, has slashed U.S. interest rates seven times since September, to 2 percent, to prevent a housing market collapse from dragging the world's largest economy into recession. Treasuries gained from July through March, the longest rally since 2000, according to an index compiled by Merrill Lynch & Co., as investors sought the relative safety of government debt.
Greenspan cut the Fed's benchmark interest rate to 1 percent in June 2003, the lowest since 1958, and kept it there for a year. He has recently come in for increased criticism for his handling of the economy and the housing bubble in the years leading up to his retirement from the Fed in 2006.
Laying Blame |
