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Show Entire ArticleA Disillusioned Mr. Gross Returns from WashingtonCNBC.com | August 25, 2010 | 06:28 AM EDT
Famous PIMCO fund manager Bill Gross went to Washington last week and admits in his September note to clients that moments like heading to the Treasury for the first time in his 35 years in the business had the “little boy inside me is screaming 'Run!'"
The purpose of the visit to see Treasury Secretary Tim Geithner was, in Gross' own words “a Bill Gross, instead of a Mr. Smith, going to Washington, but with the same populist spirit: no filibusters or anything, but an idea or two on how to benefit Main Street as opposed to Wall Street, in the ongoing housing crisis."
Unfortunately for Main Street, Gross says he found little support in Washington for his ideas.
"Just like Oz isn't Kansas, Washington D.C. isn't Newport Beach or Des Moines, Iowa," he wrote.
Gross proposed rolling Fannie Mae [ FNM 0.5235
+0.011 (+2.15%) ] and Freddie Mac
[ FMCC 0.32
-0.01 (-3.03%) ] and other housing agencies into one giant agency and call it the Government National Mortgage Association guaranteeing a majority of existing and future originations.
This solution recognizes the necessity and not the desirability of using government involvement, he said.
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Wow, why am I not surprised by this...
