tag:blogger.com,1999:blog-14963913.post7394572538121792420..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: "Keynesian Endpoint" and "The Least Dirty Shirt"Kid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-14963913.post-88835314710434088482010-06-08T13:54:31.161-04:002010-06-08T13:54:31.161-04:00i think that with Gross, although he's absolut...i think that with Gross, although he's absolutely talking his book, he's smart and straightforward. after all, he told us right away that the best plan was to "shake hands with the government." how right that was...Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-63787663611637794042010-06-08T13:49:00.284-04:002010-06-08T13:49:00.284-04:00I agree, but still think the use of "least di...I agree, but still think the use of "least dirty shirt" to frame the position of deficit spending is very different from what you find at Brad delong or Krugman's blogs. Yet, in late 2009, Pimco's Gross and others framed the same issue of govenment debt in ways similar to how delong and Krugman talked about it. The difference is probably found in Pimco's holdings(less "toxic assets" and more treasuries).joanhttps://www.blogger.com/profile/10564108791448361071noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-43752949031398013392010-06-08T12:59:59.164-04:002010-06-08T12:59:59.164-04:00beaumont - i've addressed the concept of "...beaumont - i've addressed the concept of "talking one's book" before. the bottom line is that you should always assume that someone who is talking is talking their book. then, it's up to the reader to try to figure out what's wrong with the argument if they disagree. <br /><br />what i'm saying is that i don't care that Gross is talking his book - it doesn't change the fact that i think he's correct that we're the least dirty shirt, the reserve currency, and the destination of flight-to-safety flows. do you disagree?Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-89012083607712977622010-06-08T12:56:11.885-04:002010-06-08T12:56:11.885-04:00Agree, just pointing out conflicts of interest tha...Agree, just pointing out conflicts of interest that should be front and center. When the economy tanked after Lehman bankruptcy and PIMCO was one of the biggest holders of Mortgage backed securities, Gross and his buddies were all over the media talking about the need for Government intervention. They definitely bought themselves protection the cheap way, political and social influence. Now, they are worried about the endgame. Someone should ask them if they ever presented a view that if widely accepted by market participants would hurt their investment positions. If the answer is no, are we to conclude that they are so good at their jobs that such a conflict never arises?joanhttps://www.blogger.com/profile/10564108791448361071noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-49759949393041406872010-06-08T11:31:24.008-04:002010-06-08T11:31:24.008-04:00beaumont - there is no doubt that is true. howeve...beaumont - there is no doubt that is true. however, i definitely think it would be difficult to argue with Bill Gross's comment that the US is the least dirty shirt. we ARE (for now) the reserve currency, and we ARE the flight to quality haven.Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-89911592643288727322010-06-08T11:04:46.894-04:002010-06-08T11:04:46.894-04:00PIMCO Managers pitch their book, they had a big m...PIMCO Managers pitch their book, they had a big move into Treasuries, and now are talking in ways to encourage a flight to quality. Same for those moving into gold, they worry about "inflation risks." Should not promote themselves as independent observers of the markets, but as interested parties.joanhttps://www.blogger.com/profile/10564108791448361071noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-88264423907814098922010-06-08T08:33:08.412-04:002010-06-08T08:33:08.412-04:00"miles to go before i sleep, " BWDIK - &..."miles to go before i sleep, " BWDIK - "miles to go before i sleep"Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-66814271417485213952010-06-08T08:15:12.406-04:002010-06-08T08:15:12.406-04:00The choice now is to continue to issue currency an...The choice now is to continue to issue currency and erode the paper wealth of those who have it, or to cut back on currency issuance and have "austerity" leading to deflation and hard times. Fire and Ice, if you will--you're in Robert Frost country, KD, can you feel his vibe?But What do I Know?noreply@blogger.com