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Pimco: Fed Needs to Double Its Balance Sheet
Posted By admin On March 27, 2009 @ 4:34 am In Money Watch | Comments Disabled
George Washington’s Blog 
Friday, March 27, 2009
The world’s biggest bond fund, Pimco, says  the Fed needs to double the liabilities on its balance sheet to save the economy.
Does anyone see a possible conflict of interest here?
The government hired Pimco to help run its mortgage-backed securities purchase program – a program which benefitted Pimco . Specifically, as of June 30th, 2008, 61% of Pimco’s holdings were in the very mortgage backed securities that it was hired by the Fed to buy back on behalf of American taxpayers, according to a September Bloomberg report  that cited data on Pimco’s own website.
The government also hired Pimco to advise it  of the value of $118 billion of assets guaranteed in the bailout of Bank of America.
There are a couple of other quasi-governmental hats which Pimco is wearing as well.
In addition, Pimco is buying toxic assets  through the PPIP program.
It appears that the bigger and more numerous the government bailout programs, the more money Pimco makes. So I’m not sure that Pimco is the most independent, objective observer on the government’s response to the economic crisis.
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URLs in this post:
 George Washington’s Blog : http://www.washingtonsblog.com/2009/03/pimco-fed-needs-to-double-its-balance.html
 says: http://www.reuters.com/article/newsOne/idUSTRE52P1H920090326
 benefitted Pimco: http://tpmmuckraker.talkingpointsmemo.com/2008/12/gross_profits_pimco_hired_to_m.php
 September Bloomberg report: http://www.bloomberg.com/apps/news?pid=20601087&sid=aZLLPW9YEa60&refer=home
 Image: http://www.prisonplanet.tv/subscribe.html
 advise it: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aBPaBWecY2wo
 buying toxic assets: http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE52M34J20090323
 Greenspan Slept as Off-Balance-Sheet Toxic Debt Evaded Scrutiny: http://www.prisonplanet.com/greenspan-slept-as-off-balance-sheet-toxic-debt-evaded-scrutiny.html
 Federal Reserve Balance Sheet Set to Explode: http://www.prisonplanet.com/federal-reserve-balance-sheet-set-to-explode.html
 Presenting The Fed’s Balance Sheet Through 2012 – Fed Will Surpass China As Top Holder Of US Debt By The End Of The Month: http://www.prisonplanet.com/presenting-the-feds-balance-sheet-through-2012-fed-will-surpass-china-as-top-holder-of-us-debt-by-the-end-of-the-month.html
 Wells Fargo Says It Doesn’t Have to Reserve Against Its Off-Balance Sheet Residential Exposure Because the FHA (Meaning the Taxpayers) Will Pay For It: http://www.prisonplanet.com/wells-fargo-says-it-doesnt-have-to-reserve-against-its-off-balance-sheet-residential-exposure-because-the-fha-meaning-the-taxpayers-will-pay-for-it.html
 Fed Won’t Raise Rate Till 2011, Pimco’s McCulley Says: http://www.prisonplanet.com/fed-won%e2%80%99t-raise-rate-till-2011-pimco%e2%80%99s-mcculley-says.html
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