Walk a Kb or Two in my Moccasins- Nobody 'splained it to me like that!

Simple answers to Complex Questions and Complex Answers to Simple Questions. In real life, I'm a Greater-Toronto (Canada) Realtor with RE/MAX Hallmark Realty Ltd, Brokerage. I first joined RE/MAX in 1983 and was first Registered to Trade in Real Estate in Ontario in 1974. Formerly known as "Two-Finger Ramblings of a Forensic Acuitant turned Community Synthesizer"

Friday, January 20, 2012

Two iterations of Central Banks ability to "Print themselves Out"

Marc Faber Sees Bubble in Safest Government Bonds VIDEO CLIP
Jan. 20 (Bloomberg) -- Marc Faber, publisher of the Gloom, Boom & Doom report, talks about the outlook for stocks versus bonds and his investment strategy. He speaks with Sara Eisen and Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)

Bill Gross, PIMCO: Central Banks 'Printing Money Like Gangbusters'

JANUARY 12, 2012

The world's central banks are "printing money like gangbusters," which could revive the threat of inflation  , Pimco founder Bill Gross told CNBC Wednesday.

By putting "hundreds of billions" in currency in circulation, the central banks "can produce reflation—that's why we’re seeing the pop in oil, gold" and other commodities, he said in a live interview.
At the same time, "there’s the potential for deflation if the private credit markets can’t produce some sort of confidence and solvency going forward," Gross said. "So we’re at great risk here, not only in the U.S. but on a global basis."
Gross has previously predicted a "paranormal" market in 2012 characterized by "credit and zero-bound interest rate risk" and fewer incentives for lenders to extend credit.
He said stock and bond investors must lower their expectations when it comes to returns, with 2 percent to 5 percent as good as they get this year.
He also told CNBC he expects the Federal Reserve will keep interest rates "exactly where it is at 25 basis points for the next three to four years."
Gross's Total Return Fund, the world's largest bond fund, had over $10 billion in outflows in 2011, but Gross stressed the fund "started 2011 at $240 billion and ended it at $244 billion."
He said he will run the Pimco Total Return Fund ETF  , which starts March 1, the same way he runs the bond Total Return Fund, adding, "They're twins."

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