I’ve seen Bill Gross and some of his underlings interviewed on TV a few times and have read newspaper interviews with them and published comments from their company, Pacific Investment Management Company (PIMCO), the world’s largest bonds manager. I’ve often been bothered at what I considered to be PIMCO’s coziness with government manipulation of the economy — a coziness that PIMCO used to its benefit.
Now comes a column from financial writer and businessman Chriss Street, who notes PIMCO appears to have made “a dramatic departure” from its embrace of government policies including economic stimulus, corporate bailouts, and deficit spending that have resulted from “Keynesian” economic thinking. He wonders if “PIMCO may just be the first of a coming swarm of powerful elites to abandon Keynesianism for self-preservation.”
That would be just like them, wouldn’t it? Get in while the getting is good and then get out before they have to pay for the damage they’ve helped cause.
Here’s the column. What do you think?