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What exactly is "PIMCO"?
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02-22-2013 01:28 PM
just saw a quote from another PIMCO guy, and his advice seems pretty bad , through the rear view mirror.
By PAUL KRUGMAN Published: August 02, 2002
"The basic point is that the recession of 2001 wasn't a typical postwar slump, brought on when an inflation-fighting Fed raises interest rates and easily ended by a snapback in housing and consumer spending when the Fed brings rates back down again. This was a prewar-style recession, a morning after brought on by irrational exuberance. To fight this recession the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."
Thanks, Prof. Krugman. How did that advice work out?
Hopefully the top dog is rendering better advice than this Paul McCUlley puppy. Unless the esteemed Dr. Krugman misquoted the guy.
