Economics – Page 24 – Abnormal Capitalist

It Never Rains in California

Bill Gross on liquidity :

While private equity and hedge funds have built-in “gates” to prevent an overnight exit, mutual funds and ETFs do not. That an ETF can satisfy redemption with underlying bonds or shares, only raises the nightmare possibility of a disillusioned and uninformed public throwing in the towel once again after they receive thousands of individual odd lot pieces under such circumstances. But even in milder “left tail scenarios” it is price that makes the difference to mutual fund and ETF holders alike, and when liquidity is scarce, prices usually go down not up, given a Minsky moment.

→ Janus Capital

Bill Gross Gets Personal: ‘I Just Wanted to Run Money and Be Famous’

But make no mistake: This Bill Gross, the one eying the French crullers, isn’t that Bill Gross, the one who bent markets to his will at Pacific Investment Management Co., who built one of the most enduring track records in bond management history, who moved markets with his pronouncements. That old Gross wanted fame more than power and riches, and he wanted it with a hot eagerness that made enemies. By the time Pimco cast him out, he was considered by colleagues—there’s no way to sugarcoat this—to be a world-class jerk who’d lost his touch.

→ Bloomberg

Weekend of Fear in Greece as Monday Brings Salvation or Ruin

Dorothea Lambros stood outside an HSBC branch in central Athens on Friday afternoon, an envelope stuffed with cash in one hand and a 38,000 euro ($43,000) cashier’s check in the other.

She was a few minutes too late to make her deposit at the London-based bank. She was too scared to take her life-savings back to her Greek bank. She worried it wouldn’t survive the weekend.

“I don’t know what happens on Monday,” said Lambros, a 58-year-old government employee.

Nobody does. Every shifting deadline, every last-gasp effort has built up to this: a nation that went to sleep on Friday not knowing what Monday will bring. A deal, or more brinkmanship. Shuttered banks and empty cash machines, or a few more days of euros in their pockets and drachmas in their past — and maybe their future.

→ Bloomberg

Bill Gross Thinks The End Is Near

Sorkin: I have to know: Why do you wear your tie like that?

Gross: I came down here to Orange County in ’71 from L.A., and Pimco had this brand-new, beautiful building, but they didn’t have a gym or showers. I was an exercise nut. At noon, I’d change in the bathroom and then run for about five miles. Since there wasn’t a shower, I’d towel off as best I could, but I’d be sweating and hot for an hour or two. So in the afternoon, I began to just not tie my tie. Then a year or two later, I said: “Well, what the hell, I guess I’m not tying it in the afternoon, I’ll just not tie it in the morning either.”

→ The New York Times Magazine

Bill Gross’s Bloomberg Terminal, Now A Piece of History

The keyboard will be on display as part of the Smithsonian’s “American Enterprise” exhibition and become part of the permanent collection, according to Peter Liebhold, chair and curator of the division of work and industry at the Washington-based National Museum of American History. Accompanying the keyboard are two Beanie Babies — a bull and a bear that were draped over Gross’s monitors at Pimco — and a pair of fuzzy dice representing “his beginnings as a professional blackjack player,” Liebhold said.

“My favorite thing is the password,” Liebhold said in a telephone interview Friday. “If you look at the keyboard you can see that Bill Gross, who’s controlling maybe the biggest bond fund in the world, on a piece of paper Scotch taped to the top of his keyboard has written his ID and his password. So he’s just like everybody else.”

→ Bloomberg