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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (82327)	6/1/2007 3:29:23 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

recall reading a quote from a leading LBO principle recently that money is so cheap it it is almost free Sure, money is free when you can borrow it at 5% while inflation is running north of 10%. Bonds are selling off today. Did somebody wake up today and suddenly realized that bonds are a bad investment in times of high inflation ? Or did government buyers took off early for the weekend ?

To: Crimson Ghost who wrote (82327)	6/2/2007 10:17:31 AM
From: Tommaso	Read Replies (2) \| Respond to of 110194

I can't remember if I posted this on this or another thread, but a year or so ago it seemed to me that Bill Gross had suffered some kind of cerebral accident. Up to that point he seemed very sensible to me. Less than three years ago, I think it was, he said that he had a lot of his own and family assets in PIMCO's commodity fund, PCRDX, which is where you want to be if you expect inflation. If you expect inflation, you emphatically do not want to be in bonds, at least nothing with a maturity longer than a two or three years. So there is some kind of disconnect in Gross's head.