Pimco's Gross Says Fed Rate Cut a `Sad Testimony' to the State of U.S. Economy

from Bloomberg:



Pimco's Gross Says Fed Rate Cut a `Sad Testimony' (Update1)

By Kathleen Hays and Deborah Finestone

Jan. 22 (Bloomberg) -- Bill Gross, manager of the world's biggest bond fund, said the Federal Reserve's emergency cut in borrowing costs today is a ``sad testimony'' on the state of the U.S. economy.

The central bank cut the target overnight lending rate to 3.5 percent from 4.25 percent after stock markets tumbled from Hong Kong to London amid increasing signs of a U.S. recession. Policy makers weren't scheduled to gather until next week.

``It's a sad testament to think the Fed has to cut interest rates eight days in front of a meeting to salvage the equity markets,'' said Gross, the founder and chief investment officer of Pacific Investment Management Co., in a Bloomberg Television interview. ``The U.S. economy is in a rather sad state of affairs in that it depends on housing and stock prices to keep going.''

Today's rate cut is the biggest single reduction since the Fed began using the rate as the principal tool of monetary policy around 1990. .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a3l5Hd921rLw&refer=home

much more devastating to the equity and capital markets, the US economy and jobs market, the environment, and the US dollar than can be imagined or even accurately estimated for the tax and fiscal policies alone have been ruinous, as has been the meddling in and interference with monetary policy: when added to widespread looting of the treasury, including the fabled lockbox, it will take decades to sort this mess out. Meanwhile, tens of millions will almost surely suffer from a combination of hunger and malnutrition, inadequate housing or lack thereof, lack of adequate medical and dental care, insufficient heating and cooling, et al, all this the fruition of the neocons wet dream: welcome to the Amurikkka of the future, all brought to you by the friendly family values people of the extreme right.

Edited: syntax