Monday, July 20, 2009

PIMPCO: The taxpayer proctologist!

PIMCO doesn't front run? Remember when they stuffed their funds with mortgages, and Bill Gross was advising CNBC viewers that it was "wise to shake hands with the Government?"

And then Bernanke engaged in his Quantitative Easing of buying mortgages?

Now we see that PIMCO has pimped its mortgages off to Bernanke who bought them from PIMPCO of course!

His fund in February was 86% mortgages, now it's 54%. The fund is $161 billion. So Bill Gross dumps $51+ billion of mortgages onto the taxpayer's back.

Now Bernanke has even given PIMCO a subsidy for shaking hands, albeit without a rubber glove, with the Government!

Why else did I advertise " Asseptgel hand antiseptic" for Bill Gross when he was dumping them? Bill was being the taxpayer's proctologist!

In today's WSJ:

"Mortgage holdings hit a 23-month low as a percentage of assets in Pimco Investment Management Co.'s benchmark Total Return fund in June.

On a market-valued weighted basis, the $161 billion fund had 54% of its assets last month in mortgages -- down from May's 61%. The last time the amount was that low was July 2007. The percentage got as high as 86% in February as global markets remained in turmoil. Fund manager Bill Gross loaded up on mortgage-backed securities issued by federal agencies like Fannie Mae when they were beaten down late last year but have rebounded in 2009."

Now just 10 days ago, PIMCO supposedly had a "man in the mirror" moment, and decided not to participate in the PPIP.

Now we know why he didn't.

He couldn't get behind it, because he couldn't front run it!

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