Downgrade Shows S&P Has Some Spin - Gross
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Commenting on the S&P downgraded of the U.S. credit rating Sunday night on Bloomberg TV, PIMCO's Bill Gross said the move showed that the agency has a "spin."
"I think S&P finally demonstrated some spin," Gross said. "S&P finally got it right. They spoke to a dysfunctional political system and deficits as far as the eye can see. They are enforcing some discipline. My hat is off to them."
Commenting on the impact in the market, Gross said the biggest will be in the currency market where he expects the dollar to be vulnerable on the downside.
Gross also commented on the ECB bond purchasing program. PIMCO is expecting $2 billion to $3 billion a day in terms of ECB bond purchase. The ECB might eventually have an actual interest rate target in mind, he said.
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"I think S&P finally demonstrated some spin," Gross said. "S&P finally got it right. They spoke to a dysfunctional political system and deficits as far as the eye can see. They are enforcing some discipline. My hat is off to them."
Commenting on the impact in the market, Gross said the biggest will be in the currency market where he expects the dollar to be vulnerable on the downside.
Gross also commented on the ECB bond purchasing program. PIMCO is expecting $2 billion to $3 billion a day in terms of ECB bond purchase. The ECB might eventually have an actual interest rate target in mind, he said.
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William H. Gross, Pacific Investment Management Company, LLC (PIMCO), Standard & Poor'sSign up for StreetInsider Free!
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