posted on Mar, 10 2011 @ 10:15 AM
The basis for Gross pulling out of Government bonds completely is that he doesn't feel there will be a QE3. The market is riding on an artificial
wave of QE2 credit.
IMHO, QE3 would cause further inflation and global instability. I suspect the Fed and global government entities know this. QE3 would cause an even
greater deficit, and raise the cost of financing debt interest.
No QE3 means a stronger dollar. If this is true then there should be a long term decline in values of stocks and commodities.