In his latest monthly commentary, PIMCO's Bill Gross opines that the Fed's forthcoming announcement of Quantitative Easing II of writing checks in the trillions to buy Treasury bonds is an inflationary Ponzi scheme that likely signals the end of the 30-year bull market in bonds.
"The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need - as with Charles Ponzi - to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not."
Click here for excerpts from Gross' November commentary, including how the $500 billion PIMCO Total Return strategy may be managed in a negative environment for bonds.