what a great comment from Gross....

Gross is an interesting ‘investor’ and usually has something of ‘interest’ to say – whether he is correct or not is another matter for discussion on another day! But this piece of commentary speaks quite directly.

 

“An instant replay of these past few decades would have shown that accelerating asset prices weren’t due to any particular wisdom on the part of academia or the investment community but an offensively minded Federal Reserve and their global counterparts who were printing money, lowering yields and bringing forward a false sense of monetary wealth that was dependent on perpetual motion,” Gross wrote in a commentary posted on Newport Beach, California-based Pimco’swebsite today.

Gross Says Investors Should Embrace Defense With Zero Rates, Systemic Risk

http://www.bloomberg.com/news/2012-02-28/gross-says-investors-should-embrace-a-defensive-strategy-amid-zero-rates.html

No free liquidity...

A truly amazing time that we live in when the market has moved to the point where investors are willing to pay the Treasury to 'park' their liquidity!

Treasury May Let Investors Pay to Hold U.S. Debt

Published February 01, 2012; Reuter

The U.S. government may ask investors to pay for the privilege and safety of holding short-term debt issued by its Treasury Department.

In response to clamor from investors, the Treasury said on Wednesday it was looking closely atallowing negative-yield auctions. This would mean bidders who want the security of U.S. government debt in the face of global insecurity, might have to pay a premium for it.

Doing so would allow the U.S. government to benefit from something that is already occurring on the secondary market, where investors have accepted negative yields in recent months to protect their cash from financial strains.

Read more:

http://www.foxbusiness.com/investing/2012/02/01/treasury-may-let-investors-pay-to-hold-us-debt/print#ixzz1lADE97Da