MutualFundWire.com: Gross Calls For an Infrastructure Bank

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Thursday, June 23, 2011

Gross Calls For an Infrastructure Bank

Bill Gross
Pimco
Co-Founder, co-CIO

Fundsters eagerly anticipating Bill Gross' next monthly prognostication must wait no longer. The Pimco [see profile] co-chief investment officer just released his "investment outlook" for July, and it sounds like Gross wants an FDR-esque "New Deal" from the Obama administration.

Specifically, Gross attacks the current emphasis on deficit reduction as a solution to all our economic problems. He's more worried about job creation, and he wants the U.S. government throwing its weight into the endeavor. Gross comes out in favor of a national infrastructure bank (also advocated by General Electric chief Jeff Immelt, Princeton economist Paul Krugman and Newsweek editor Fareed Zakaria), government support of the nascent green energy industry, a bigger emphasis on technical -- as opposed to liberal arts -- higher education and more.

Gross even hearkens back to FDR's Civilian Conservation Corps, an employer of last resort program during the Great Depression. He offers a quote from economist David Rosenberg: "I'd have a shovel in the hands of the long-term unemployed from 8am to noon, and from 1pm to 5pm I'd have them studying algebra, physics and geometry."

Printed from: MFWire.com/story.asp?s=37146

Copyright 2011, InvestmentWires, Inc.
All Rights Reserved