common sense said:

The title should be, Bill Gross Says We Can’t Nationalize Citi or Bank of America because I Would Lose Whole Lot of Money, and Look Silly for advising people to invest where government has taken stake.

John, that’s not a bad suggestion. Maybe you should change the title.

Enormous respect for Bill Gross, but just can’t escape his massive conflict when arguing for no haircut to bondholders.

Other than costing PIMCO, et al, money, is there ANY reason we shouldn’t haircut bondholders? Where does it say on those bonds that they are backed by the full faith and credit of the United States Government?

clawback said:

****Suddenly we have a whole new meme: not only are banks too big to fail, they’re too big even to understand. So they should just be fed public money and left to do their magic.**** That Bill Isaac character pushed that thesis this morning as well. Gotta wonder who is behind this new tack.

Well of course he would say that!