Thursday, May 5, 2011
Did the "Bond King" just go short at the bottom?
On April 11, "Bond King" Bill Gross of Pimco revealed on CNBC that he was short the Treasury market. It looks like he sold the bottom of the move.
It's not suprising that Gross would get himself in trouble on this. His flawed understanding of our monetary system--where he constantly conflates a household's balance sheet with that of the sovereign government--is a recipe for disaster for a government bond trader. Gross should know better.
Warren Mosler was right about Gross when he said, "He's a better marketer than trader."