related_results_labels({"version":"1.0","encoding":"UTF-8","feed":{"xmlns":"http://www.w3.org/2005/Atom","xmlns$openSearch":"http://a9.com/-/spec/opensearchrss/1.0/","xmlns$georss":"http://www.georss.org/georss","id":{"$t":"tag:blogger.com,1999:blog-7676161"},"updated":{"$t":"2009-12-16T01:00:20.406-05:00"},"title":{"type":"text","$t":"EF Hutton"},"subtitle":{"type":"html","$t":"...Are you Listening?"},"link":[{"rel":"http://schemas.google.com/g/2005#feed","type":"application/atom+xml","href":"http://efhutton.blogspot.com/feeds/posts/default"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/-/gross?alt\u003djson-in-script\u0026max-results\u003d5"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/search/label/gross"},{"rel":"hub","href":"http://pubsubhubbub.appspot.com/"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"}}],"generator":{"version":"7.00","uri":"http://www.blogger.com","$t":"Blogger"},"openSearch$totalResults":{"$t":"5"},"openSearch$startIndex":{"$t":"1"},"openSearch$itemsPerPage":{"$t":"5"},"entry":[{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-538030222391091276"},"published":{"$t":"2009-08-01T11:30:00.000-04:00"},"updated":{"$t":"2009-08-01T11:30:00.396-04:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"percent"},{"scheme":"http://www.blogger.com/atom/ns#","term":"product"},{"scheme":"http://www.blogger.com/atom/ns#","term":"domestic"},{"scheme":"http://www.blogger.com/atom/ns#","term":"change"},{"scheme":"http://www.blogger.com/atom/ns#","term":"chart"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"}],"title":{"type":"text","$t":"Gross Domestic Product Percent Change (Chart)"},"content":{"type":"html","$t":"Gross Domestic Product, 1 Decimal, Quarterly, Billions of Dollars, Seasonally Adjusted Annual Rate.\u003cbr /\u003e\u003cbr /\u003eBar Chart, \u003cb\u003ePercent Change\u003c/b\u003e \u003cbr /\u003e\u003cbr /\u003e$14,149.8 Billions versus $14,497.8 a year ago. \u003cbr /\u003e\u003cbr /\u003e\u003ca href\u003d\"http://allamericaninvestor.blogspot.com\"\u003e\u003cimg style\u003d\"display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 535px; height: 321px;\" src\u003d\"http://research.stlouisfed.org/fred2/graph/fredgraph.png?\u0026chart_type\u003dbar\u0026graph_id\u003d0\u0026category_id\u003d\u0026\u0026width\u003d535\u0026height\u003d321\u0026bgcolor\u003d%23FFFFCC\u0026graph_bgcolor\u003d%23FFFFFF\u0026txtcolor\u003d%23000000\u0026preserve_ratio\u003dtrue\u0026id\u003dGDP,\u0026transformation\u003dpch,\u0026scale\u003dLeft,\u0026range\u003d5yrs,\u0026cosd\u003d2004-04-01,\u0026coed\u003d2009-04-01,\u0026line_color\u003d%23000000,\u0026link_values\u003d,\u0026mark_type\u003d,\u0026line_style\u003d,\u0026vintage_date\u003d2009-08-01,\u0026revision_date\u003d2009-08-01,\u0026mma\u003d,\u0026nd\u003d,\u0026ost\u003d,\u0026oet\u003d,\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e \u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dEfHutton\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003eSubscribe to EF Hutton via Email\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003ca href\u003d\"http://twitter.com/efhuttonblog\"\u003e\u003cb\u003eFollow E F Hutton on Twitter\u003c/b\u003e\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ccenter\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003e \u003cspan style\u003d\"font-size:130%;\"\u003eKindle: Amazon's 6\" \u003c/span\u003e\u003c/a\u003e\u003cspan style\u003d\"font-size:130%;\"\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003e\u003cimg src\u003d\"https://images-na.ssl-images-amazon.com/images/I/51Wfzh%2BZq%2BL._SL110_.jpg\" border\u003d\"0\" /\u003e\u003c/a\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003eWireless Reading Device \u003c/a\u003e\u003c/span\u003e\u003c/center\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-538030222391091276?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/538030222391091276"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/538030222391091276"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/08/gross-domestic-product-percent-change.html","title":"Gross Domestic Product Percent Change (Chart)"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}]},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-45994604868303361"},"published":{"$t":"2009-08-01T10:30:00.002-04:00"},"updated":{"$t":"2009-08-01T10:34:15.799-04:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"real"},{"scheme":"http://www.blogger.com/atom/ns#","term":"graph"},{"scheme":"http://www.blogger.com/atom/ns#","term":"national"},{"scheme":"http://www.blogger.com/atom/ns#","term":"INVESTMENT"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"},{"scheme":"http://www.blogger.com/atom/ns#","term":"Defense"}],"title":{"type":"text","$t":"Real National Defense Gross Investment (Graph)"},"content":{"type":"html","$t":"Real National Defense Gross Investment, Quarterly, Billions of Chained 2000 Dollars, Seasonally Adjusted Annual Rate.\u003cbr /\u003e\u003cbr /\u003eFYI.\u003cbr /\u003e\u003cbr /\u003e\u003ca href\u003d\"http://allamericaninvestor.com\"\u003e\u003cimg style\u003d\"display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 535px; height: 321px;\" src\u003d\"http://research.stlouisfed.org/fred2/graph/fredgraph.png?\u0026chart_type\u003dline\u0026graph_id\u003d0\u0026category_id\u003d\u0026recession_bars\u003dOn\u0026width\u003d535\u0026height\u003d321\u0026bgcolor\u003d%23CCFFCC\u0026graph_bgcolor\u003d%23FFFFFF\u0026txtcolor\u003d%23000000\u0026preserve_ratio\u003dtrue\u0026id\u003dDGIC96,\u0026transformation\u003dlin,\u0026scale\u003dLeft,\u0026range\u003d10yrs,\u0026cosd\u003d1999-04-01,\u0026coed\u003d2009-04-01,\u0026line_color\u003d%230000FF,\u0026link_values\u003d,\u0026mark_type\u003dNONE,\u0026line_style\u003dSolid,\u0026vintage_date\u003d2009-08-01,\u0026revision_date\u003d2009-08-01,\u0026mma\u003d,\u0026nd\u003d,\u0026ost\u003d,\u0026oet\u003d,\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dEfHutton\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003eSubscribe to EF Hutton via Email\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ca href\u003d\"http://twitter.com/efhuttonblog\"\u003e\u003cb\u003eFollow E F Hutton on Twitter\u003c/b\u003e\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ccenter\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003e \u003cspan style\u003d\"font-size:130%;\"\u003eKindle: Amazon's 6\" \u003c/span\u003e\u003c/a\u003e\u003cspan style\u003d\"font-size:130%;\"\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003e\u003cimg src\u003d\"https://images-na.ssl-images-amazon.com/images/I/51Wfzh%2BZq%2BL._SL110_.jpg\" border\u003d\"0\" /\u003e\u003c/a\u003e\u003ca href\u003d\"http://www.amazon.com/gp/product/B00154JDAI?ie\u003dUTF8\u0026amp;tag\u003defhutton-20\"\u003eWireless Reading Device \u003c/a\u003e\u003c/span\u003e\u003c/center\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-45994604868303361?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/45994604868303361"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/45994604868303361"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/08/real-national-defense-gross-investment.html","title":"Real National Defense Gross Investment (Graph)"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}]},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-6239909486372131382"},"published":{"$t":"2009-04-29T09:19:00.001-04:00"},"updated":{"$t":"2009-04-29T09:19:55.764-04:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"gdp"},{"scheme":"http://www.blogger.com/atom/ns#","term":"product"},{"scheme":"http://www.blogger.com/atom/ns#","term":"domestic"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"}],"title":{"type":"text","$t":"Gross Domestic Product Drops 6.1 Percent"},"content":{"type":"html","$t":"\u003cspan style\u003d\"font-weight:bold;\"\u003eReal gross domestic product\u003c/span\u003e -- the output of goods and services produced by labor and property located in the United States -- \u003cspan style\u003d\"font-weight:bold;\"\u003edecreased at an annual rate of 6.1 percent in the first quarter of 2009\u003c/span\u003e, (that is, from the fourth quarter to the first quarter), according to advance estimates released by the Bureau of Economic Analysis.  In the \u003cspan style\u003d\"font-weight:bold;\"\u003efourth quarter, real GDP decreased 6.3 percent.\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003e\u003cspan style\u003d\"font-weight:bold;\"\u003eThe price index for gross domestic purchases\u003c/span\u003e, which measures prices paid by U.S. residents, \u003cspan style\u003d\"font-weight:bold;\"\u003edecreased 1.0 percent\u003c/span\u003e in the first quarter, \u003cspan style\u003d\"font-weight:bold;\"\u003ecompared with a decrease of 3.9 percent in the fourth.\u003c/span\u003e Excluding food and energy prices, the price index for gross domestic purchases increased 1.4 percent in the first quarter, compared with an increase of 1.2 percent in the fourth.  The federal pay raise for civilian and military personnel added 0.3 percentage point to the change in the first quarter gross domestic purchases price index.\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dAllAmericanInvestor\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003e\u003cb\u003eSubscribe to All American Investor via Email\u003c/b\u003e\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003ctable width\u003d\"98%\" bgcolor\u003d\"#FFFFF0\" cellspacing\u003d\"1\" cellpadding\u003d\"1\" border\u003d\"1\"\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd\u003e\u003ca href\u003d\"http://www.flickr.com/photos/7283119@N08/3193476301/\" title\u003d\"Profile Shot by BobbyDelray, on Flickr\"\u003e\u003cimg style\u003d\"float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 75px; height: 75px;\" src\u003d\"http://farm4.static.flickr.com/3385/3193476301_1325afb2c7_s.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:small;\"\u003e\u003cb\u003e\u003ca href\u003d\"http://allamericaninvestor.blogspot.com/\"\u003eBob DeMarco\u003c/a\u003e\u003c/b\u003e is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from \u003ca href\u003d\"http://allamericaninvestor.blogspot.com/\"\u003eAll American Investor\u003c/a\u003e has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites.  Bob is actively seeking syndication and writing assignments.\u003c/span\u003e\u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003c/table\u003e\u003cspan id\u003d\"fullpost\"\u003e   \u003cbr /\u003eReal personal consumption expenditures increased 2.2 percent in the first quarter, in contrast to a decrease of 4.3 percent in the fourth.  Durable goods increased 9.4 percent, in contrast to a decrease of 22.1 percent.  Nondurable goods increased 1.3 percent, in contrast to a decrease of 9.4 percent.  Services increased 1.5 percent, the same increase as in the fourth.\u003cbr /\u003e\u003cbr /\u003eReal nonresidential fixed investment decreased 37.9 percent in the first quarter, compared with a decrease of 21.7 percent in the fourth.  Nonresidential structures decreased 44.2 percent, compared with\u003cbr /\u003ea decrease of 9.4 percent.  Equipment and software decreased 33.8 percent, compared with a decrease of 28.1 percent.  Real residential fixed investment decreased 38.0 percent, compared with a decrease of 22.8 percent.\u003cbr /\u003e\u003cbr /\u003eReal exports of goods and services decreased 30.0 percent in the first quarter, compared with a decrease of 23.6 percent in the fourth.  Real imports of goods and services decreased 34.1 percent, compared with a decrease of 17.5 percent.\u003cbr /\u003e\u003cbr /\u003eReal federal government consumption expenditures and gross investment decreased 4.0 percent in the first quarter, in contrast to an increase of 7.0 percent in the fourth.  National defense decreased 6.4 percent, in contrast to an increase of 3.4 percent.  Nondefense increased 1.3 percent, compared with an increase of 15.3 percent. Real state and local government consumption expenditures and gross\u003cbr /\u003einvestment decreased 3.9 percent, compared with a decrease of 2.0 percent.\u003cbr /\u003e\u003cbr /\u003eThe real change in private inventories subtracted 2.79 percentage points from the first-quarter\u003cbr /\u003echange in real GDP after subtracting 0.11 percentage point from the fourth-quarter change.  Private businesses decreased inventories $103.7 billion in the first quarter, following decreases of $25.8 billion in the fourth quarter and $29.6 billion in the third.\u003cbr /\u003e\u003cbr /\u003eReal final sales of domestic product -- GDP less change in private inventories -- decreased 3.4 percent in the first quarter, compared with a decrease of 6.2 percent in the fourth.\u003cbr /\u003e\u003cbr /\u003e\u003cbr /\u003eGross domestic purchases\u003cbr /\u003e\u003cbr /\u003eReal gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 7.8 percent in the first quarter, compared with a decrease of 5.9 percent in the fourth.\u003cbr /\u003e\u003cbr /\u003e\u003cbr /\u003eDisposition of personal income\u003cbr /\u003e\u003cbr /\u003eCurrent-dollar personal income decreased $59.9 billion (2.0 percent) in the first quarter, compared with a decrease of $42.9 billion (1.4 percent) in the fourth.\u003cbr /\u003e\u003cbr /\u003ePersonal current taxes decreased $193.5 billion in the first quarter, in contrast to an increase of $19.7 billion in the fourth.\u003cbr /\u003e\u003cbr /\u003eDisposable personal income increased $133.6 billion (5.1 percent) in the first quarter, in contrast to a decrease of $62.6 billion (2.3 percent) in the fourth.  Real disposable personal income increased 6.2 percent, compared with an increase of 2.7 percent.\u003cbr /\u003e\u003cbr /\u003ePersonal outlays increased $18.1 billion (0.7 percent) in the first quarter, in contrast to a decrease of $260.2 billion (9.5 percent) in the fourth.  Personal saving -- disposable personal income less personal outlays -- was $453.0 billion in the first quarter, compared with $337.4 billion in the fourth.  The personal saving rate -- saving as a percentage of disposable personal income -- was 4.2 percent in the first quarter, compared with 3.2 percent in the fourth.  For a comparison of personal saving in BEA’s national income and product accounts with personal saving in the Federal Reserve Board’s flow of funds accounts and data on changes in net worth, go to http://www.bea.gov/bea/dn/nipaweb/Nipa-Frb.asp.\u003cbr /\u003e\u003cbr /\u003e\u003cbr /\u003eCurrent-dollar GDP\u003cbr /\u003e\u003cbr /\u003eCurrent-dollar GDP -- the market value of the nation's output of goods and services -- decreased 3.5 percent, or $124.8 billion, in the first quarter to a level of $14,075.5 billion.  In the fourth quarter, current-dollar GDP decreased 5.8 percent, or $212.5 billion.\u003cbr /\u003e\u003cbr /\u003e\u003ccenter\u003e\u003ciframe src\u003d\"http://rcm.amazon.com/e/cm?t\u003dallamericaninvestor-20\u0026amp;o\u003d1\u0026amp;p\u003d12\u0026amp;l\u003dur1\u0026amp;category\u003dkindle\u0026amp;banner\u003d1RR50DN6TK7D02JARP02\u0026amp;f\u003difr\" width\u003d\"300\" height\u003d\"250\" scrolling\u003d\"no\" border\u003d\"0\" marginwidth\u003d\"0\" style\u003d\"border:none;\" frameborder\u003d\"0\"\u003e\u003c/iframe\u003e\u003c/center\u003e\u003cbr /\u003e\u003cbr /\u003e\u003cb\u003eFollow All American Investor on \u003ca href\u003d\"http://allamericaninvestor.blogspot.com/\"\u003eTwitter\u003c/a\u003e\u003c/b\u003e \u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-6239909486372131382?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6239909486372131382"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6239909486372131382"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/04/gross-domestic-product-drops-61-percent.html","title":"Gross Domestic Product Drops 6.1 Percent"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}]},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-8642361239262974543"},"published":{"$t":"2009-01-30T22:35:00.000-05:00"},"updated":{"$t":"2009-01-30T22:36:10.047-05:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"bailout"},{"scheme":"http://www.blogger.com/atom/ns#","term":"2009"},{"scheme":"http://www.blogger.com/atom/ns#","term":"crisis"},{"scheme":"http://www.blogger.com/atom/ns#","term":"stimulus package"},{"scheme":"http://www.blogger.com/atom/ns#","term":"economic"},{"scheme":"http://www.blogger.com/atom/ns#","term":"pimco"},{"scheme":"http://www.blogger.com/atom/ns#","term":"investment outlook"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"}],"title":{"type":"text","$t":"PIMCOs Gross: Find ways to prop up the Values of Assets"},"content":{"type":"html","$t":"To PIMCO, the remedy for this deflationary delevering and mini-depression is simple and almost axiomatic: stop the decline in asset prices.\u003cbr /\u003e\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6904/chart2.jpg\"\u003e\u003cimg style\u003d\"display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 320px;\" src\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6904/chart2.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003e\u003cspan id\u003d\"fullpost\"\u003e\u003cbr /\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://feedburner.google.com/fb/a/mailverify?uri\u003dAllAmericanInvestor\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003eSubscribe to All American Investor via Email\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6900/Gross1May_08_140.jpg\"\u003e\u003cimg style\u003d\"float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 100px; height: 140px;\" src\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6900/Gross1May_08_140.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003e\u003cspan class\u003d\"Apple-style-span\" style\u003d\"font-weight: bold;\"\u003eInvestment Outloo\u003c/span\u003ek\u003cbr /\u003eBill Gross | February 2009\u003cbr /\u003e\u003cbr /\u003e\u003cspan class\u003d\"Apple-style-span\" style\u003d\"color: rgb(102, 102, 204);\"\u003e\u003cspan class\u003d\"Apple-style-span\" style\u003d\"font-weight: bold;\"\u003eBEEP BEEP!\u003c/span\u003e\u003c/span\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6902/WileECoyoteCliffSkySoft3small.gif\"\u003e\u003cimg style\u003d\"float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 270px;\" src\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6902/WileECoyoteCliffSkySoft3small.gif\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003eThe current financial and economic crisis is difficult to appreciate, not only for the drop in elevation, but because of the swiftness of the declines. It’s been a Wile E. Coyote 12 months – straight down like a dead weight. A year ago, global equity prices were nearly twice today’s levels and recession was only a whisper on the lips of the gloomiest of economists. Today, descriptions drawing parallels to the Great Depression make it obvious that a major shift in economic growth and its historic financial model, as well as policy prescriptions for its revival, are underway. Most of the world’s connected economies and its citizens are in shock, conscious but not fully aware of the seismic shifts that will unfold in future years.\u003cbr /\u003e\u003cbr /\u003ePIMCO’s thesis for several years has held that the levered global economy long ago morphed from a banking-dominated regime to one that hid behind securitized lending and structures resembling a “shadow banking” system. SIVs, hedge funds, CDOs and increasingly levered mortgage and investment banks fueled asset appreciation in all investment markets, which in turn propelled real economic growth and employment to unsustainable levels. But, with U.S. housing prices as its trigger, the delevering process did a Wile E. Coyote and headed over the cliff in mid-year 2007, dragging down almost all asset prices except government bonds. The real economy followed shortly thereafter, not just in the U.S., but globally, proving that linkages work on the “down” as well as the upside. To PIMCO, the remedy for this deflationary delevering and mini-depression is simple and almost axiomatic: stop the decline in asset prices. If that can be done, the real economy will level out as well. When home prices stop going down, newly created households will be more willing to take a chance on ownership as opposed to renting. If stock prices consolidate, recently burned investors will be more willing to invest, as opposed to stuffing their 401(k) mattresses with Treasury bills. Business investment, jobs, and profits should follow quickly behind.\u003cbr /\u003e\u003cbr /\u003eThe simplicity of the solution, however, is not easily achieved once deflationary momentum takes hold. Animal spirits, once dampened, are hard to reignite; “fear of fear itself” dominates greed. Under such circumstances, the benevolent hand of government is required and Keynes is reincarnated in an attempt to plug the dike via fiscal spending and imaginative monetary policies that support asset prices. PIMCO has recently been contracted to assist in several publically announced programs which have helped in that effort: the CPFF, which has benefitted commercial paper yields, and the Federal Reserve’s purchase program for agency-backed mortgage loans, which has lowered 30-year mortgage rates to 4.5% and fostered the affordability of new and secondary housing prices. These two programs, in our opinion, have been the major policy successes to date – not because of our involvement – but because they have supported and increased asset prices whose decline has been the major deflationary thrust behind the real economy. Stop asset prices from going down and with a 12-month lag, unemployment will stop going up, and President Obama’s targeted three million new jobs will have a fighting chance of being achieved.\u003cbr /\u003e\u003cbr /\u003eBut stopping the decline of asset prices can be and has been attempted in numerous, seemingly uncoordinated ways. Recapitalization of the banks has been the major thrust, in the hopes that banks would extend credit which would reinvigorate asset pricing. Those who argue strongly for a recapitalization of the banking system, however, may be missing the distinction between the banking system as we once knew it, and the “shadow banking” system that superseded it. Jim Bianco, who heads up the research tank bearing his own name, brought the difference to mind in a recently produced piece entitled, “When Will The Banks Start Lending?” His conclusion was that banks already were – lending – but it was the “shadow system” (my words) that was holding up the parade. According to his analysis, shown in Chart 1, securitization has for several years exceeded bank loans as a percentage of private credit market debt. In contrast to recent headlines, however, banks have been picking up their lending, but it has been the “shadow banks” that have faltered. That makes sense. While banks may have tightened their lending standards, fresh capital from the TARP has made it possible to make new loans. The shadow banks, however – hedge funds, investment banks, and structured financial conduits – have been forced to delever as government funds have been directed to more visible institutional lenders. Granted, Goldman Sachs and Morgan Stanley have been TARP recipients, but only under the conditions of downsizing and degearing on their way to becoming regular banks, which have cut their holdings of assets significantly in percentage and actual dollar terms. It should not surprise, therefore, that with the exception of specifically directed government programs directed at commercial paper rates and 30-year mortgage yields, past policies have been unsuccessful. Banks have been recapitalized – yes – and banks have cautiously started to lend. But shadow banks are still delevering due to disappearing and unavailable fresh capital and, as they do, they continue to drag asset prices with them. PIMCO’s Ramin Toloui has produced Chart 2 which correlates the contraction in household debt to the decline of the securitization market. He estimates that there is a one trillion dollar hole that needs to be filled by policymakers in this area alone.\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6903/chart1.jpg\"\u003e\u003cimg style\u003d\"display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 304px;\" src\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6903/chart1.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6904/chart2.jpg\"\u003e\u003cimg style\u003d\"display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 320px;\" src\u003d\"http://www.pimco.com/NR/rdonlyres/F399418E-1E67-4A61-8F02-EB1FA3168202/6904/chart2.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003eStressing the importance of the shadow banks is not the same thing as suggesting that they should be next in line for government largesse and bailouts. Lord knows, the Obama Administration is not going to bail out hedge funds, CDOs, private equity firms (Cerberus?), or Donald Trump. There are levered risk takers that will be, and should be, allowed to fail. But in permitting failure, policymakers must still be cognizant of the need to support asset prices – hopefully by inducing confidence and trust in private investors, as pointed out by Robert Shiller in a recent Wall Street Journal op-ed, but if need be by the financing or purchase of assets themselves. It’s not so much that the stock market needs to go back to 10,000. That would be nice for millions of 401(k)s that have been cut in half over the past 12 months, but it is not likely. Rather, asset prices securitizing commercial real estate and credit card receivables, as well as plain old-fashioned municipal bonds, must stop going down if the real economy has any chance to revive by 2010.\u003cbr /\u003e\u003cbr /\u003eExample: CMBS or commercial real estate mortgage-backed securities are now priced to yield over 12% vs. 5% in recent years. As real estate financing comes due and rolls over in the next few years, it is imperative these yields return to mid-single digits if shopping centers, retail malls, and office buildings are to remain viable. How best to bring those yields down is debatable: another CPFF-like structure with self-insurance and contributed fees as its equity backstop? A generous portion of remaining TARP billions providing a reserve cushion for Federal Reserve funding? A good bank, bad (aggregator) bank structure? All three are being debated by policymakers and we should have clarity within a week’s time. But one thing is certain: an economic recovery is dependent upon commercial real estate prices stabilizing and most retail stores staying open for business in the months and years ahead.\u003cbr /\u003e\u003cbr /\u003eSimilarly, municipal yields are now trading at nearly twice their Treasury counterparts, implying that municipal bonds are trading at 80 cents on the dollar instead of 113 cents like the average Treasury. To enable states and cities to return to normal functioning, those bonds must return to par. Modern day capitalism depends on the successful refinancing and issuance of securities at a price and yield level not significantly divorced from past experience. That is the same thing as saying that current yields must come close to matching the economy’s embedded cost of debt if default is to be avoided. Not only municipalities, but the efficient operation of hospitals, nursing homes and even universities depend on the leveling and returning of municipal bond prices to higher levels. Similar arguments can be made for corporate bonds as well.\u003cbr /\u003e\u003cbr /\u003ePIMCO’s advice to policymakers is as follows: you can’t bail out everyone, yet economic recovery is not possible unless certain critical asset sectors are not only reliquefied, but rejuvenated in price. The prior Administration’s focus on the banks has been critical but unidimensional. The shadow banking system with its leverage and financial innovation, powered a near 25-year global economic expansion, but it is the delevering of those hidden quasi-banks that is now threatening its petrification. Policymakers should not focus entirely on one-off bailouts of large real estate developers, municipalities, or even credit card issuers like they have with Citi, BofA, and AIG. Rather, they should recognize that supporting critical asset prices such as municipal bonds, CMBS, and even investment grade corporate bonds is a necessary step towards eventual economic revival. Capitalism at its philosophical and practical center depends on credit, and while new loans can be and are being advanced via the banking system, it’s a much more difficult task to force shadow banks to lend. That lending depends on securitization which in turn depends on stable and eventually higher asset prices than currently exist. The original focus of the TARP was on asset prices, but the prior Administration quickly lost its way or perhaps its nerve. Like his Road Runner nemesis, Wile E. Coyote must now extend some infrequently used figurative wings to avoid the deflationary precipice below. Support asset prices. Beep Beep!\u003cbr /\u003e\u003cbr /\u003eWilliam H. Gross\u003cbr /\u003eManaging Director\u003cbr /\u003e\u003ca href\u003d\"http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2009/IO+Feb+2009+Gross+Beep+Beep.htm\"\u003eInvestment Outlook\u003c/a\u003e\u003cbr /\u003e\u003cbr /\u003e\u003ch\u003e\u003ca href\u003d\"http://allamericaninvestor.blogspot.com/2009/01/pimcos-gross-find-ways-to-prop-up.html\"\u003ePIMCOs Gross: Find ways to prop up the Values of Assets\u003c/a\u003e\u003c/h\u003e\u003cbr /\u003e\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-8642361239262974543?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"related","href":"http://allamericaninvestor.blogspot.com/2009/01/pimcos-gross-find-ways-to-prop-up.html","title":"PIMCOs Gross: Find ways to prop up the Values of Assets"},{"rel":"replies","type":"application/atom+xml","href":"http://efhutton.blogspot.com/feeds/8642361239262974543/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-find-ways-to-prop-up.html#comment-form","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/8642361239262974543"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/8642361239262974543"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-find-ways-to-prop-up.html","title":"PIMCOs Gross: Find ways to prop up the Values of Assets"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}},{"id":{"$t":"tag:blogger.com,1999:blog-7676161.post-6673099328436675654"},"published":{"$t":"2009-01-11T23:28:00.004-05:00"},"updated":{"$t":"2009-01-11T23:44:49.667-05:00"},"category":[{"scheme":"http://www.blogger.com/atom/ns#","term":"TIPS"},{"scheme":"http://www.blogger.com/atom/ns#","term":"protected"},{"scheme":"http://www.blogger.com/atom/ns#","term":"treasury"},{"scheme":"http://www.blogger.com/atom/ns#","term":"bonds"},{"scheme":"http://www.blogger.com/atom/ns#","term":"muni"},{"scheme":"http://www.blogger.com/atom/ns#","term":"pimco"},{"scheme":"http://www.blogger.com/atom/ns#","term":"gross"},{"scheme":"http://www.blogger.com/atom/ns#","term":"inflation"}],"title":{"type":"text","$t":"PIMCOs Gross likes Muni Bonds and Treasury Inflation Protected Securities"},"content":{"type":"html","$t":"\u003cblockquote\u003eMunicipal bonds are among the best buying opportunities now as states line up for billions in federal aid from the incoming Barack Obama administration, said Bill Gross, chief investment officer of the giant bond firm PIMCO.\u003cbr /\u003e\u003ca onblur\u003d\"try {parent.deselectBloggerImageGracefully();} catch(e) {}\" href\u003d\"http://tbn0.google.com/images?q\u003dtbn:EoDwMBhe6n0RkM:http://money.cnn.com/2005/08/11/markets/bondcenter/bond_shortage/gross_bill.03.jpg\"\u003e\u003cimg style\u003d\"float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 106px; height: 79px;\" src\u003d\"http://tbn0.google.com/images?q\u003dtbn:EoDwMBhe6n0RkM:http://money.cnn.com/2005/08/11/markets/bondcenter/bond_shortage/gross_bill.03.jpg\" border\u003d\"0\" alt\u003d\"\" /\u003e\u003c/a\u003e\u003cbr /\u003eOther strategies offered by Gross in his January investment newsletter were buying Treasury Inflation Protected Securities (TIPS) and certain investment-grade corporate bonds.\u003cbr /\u003e\u003cbr /\u003eBy contrast, in the Treasury market, \"low yields offer little reward and increasing risk,\" given ballooning federal budget deficits, he said.\u003c/blockquote\u003e\u003cbr /\u003e\u003cblockquote style\u003d\"text-align: center;\"\u003e\u003ca href\u003d\"http://www.feedburner.com/fb/a/emailverifySubmit?feedId\u003d815120\u0026amp;loc\u003den_US\"\u003e\u003cspan class\u003d\"Apple-style-span\"  style\u003d\"font-size:large;\"\u003eSubscribe to EF Hutton via Email\u003c/span\u003e\u003c/a\u003e\u003c/blockquote\u003e\u003cbr /\u003e\u003cspan id\u003d\"fullpost\"\u003e       \u003cbr /\u003e\u003ch1\u003e\u003ca href\u003d\"http://uk.reuters.com/article/ousiv/idUKTRE5076PK20090108?pageNumber\u003d2\u0026amp;virtualBrandChannel\u003d0\"\u003ePIMCO's Gross says muni bonds and TIPS \"attractive\"\u003c/a\u003e\u003c/h1\u003e\u003cbr /\u003e\u003cbr /\u003eBy Ros Krasny\u003cbr /\u003e\u003cbr /\u003eCHICAGO (Reuters) - Municipal bonds are among the best buying opportunities now as states line up for billions in federal aid from the incoming Barack Obama administration, said Bill Gross, chief investment officer of the giant bond firm PIMCO.\u003cbr /\u003e\u003cbr /\u003eOther strategies offered by Gross in his January investment newsletter were buying Treasury Inflation Protected Securities (TIPS) and certain investment-grade corporate bonds.\u003cbr /\u003e\u003cbr /\u003eBy contrast, in the Treasury market, \"low yields offer little reward and increasing risk,\" given ballooning federal budget deficits, he said.\u003cbr /\u003e\u003cbr /\u003eGross noted that requests for aid from municipalities and states total nearly $1 trillion \"and to think California or New York City would be allowed to fail is, well -- unthinkable.\"\u003cbr /\u003e\u003cbr /\u003e\"Municipal bonds ... selling at historically high ratios relative to U.S. Treasuries, offer attractive price appreciation potential, or at the very least a defensiveness with high carry that a 2 1/2 percent 10-year Treasury cannot,\" Gross said.\u003cbr /\u003e\u003cbr /\u003eAccording to Municipal Market Data, top-rated 30-year munis now yield 161 percent and 10-year munis yield 133 percent of comparable Treasuries.\u003cbr /\u003e\u003cbr /\u003eTriple A rated munis started 2008 yielding a more normal 85 percent of 30-year Treasuries and 79 percent of 10-year government bonds.\u003cbr /\u003e\u003cbr /\u003eMeanwhile, Gross said he doubted the U.S. economy was in for the type of deflation that markets are forecasting, making TIPS a good buy.\u003cbr /\u003e\u003cbr /\u003eCurrent ultra-low Treasury yields \"cannot possibly be maintained unless deflation, as opposed to inflation, becomes the odds-on favorite,\" he said.\u003cbr /\u003e\u003cbr /\u003eMarket-based break-even inflation rates now point to a consumer price index averaging negative 1 percent for the next 10 years, which Gross termed \"possible, but not likely.\"\u003cbr /\u003e\u003cbr /\u003eOn the corporate bond side, yields of 6 percent or more for intermediate maturities are still common, Gross said.\u003cbr /\u003e\u003cbr /\u003e\"Investors should recognize the value of high-quality, investment-grade corporate bonds in many markets.\"\u003cbr /\u003e\u003cbr /\u003eOtherwise, PIMCO continues to maintain a strategy of buying assets that are under the federal bailout \"umbrella.\"\u003cbr /\u003e\u003cbr /\u003e\"Shake hands with the government ... their checkbook represents the largest and most potent source of buying power in 2009 and beyond,\" Gross said.\u003cbr /\u003e\u003cbr /\u003eGross said investors needed to be vigilant about higher inflation over the long term, given the \"near certainty of future budget deficits approaching 6 percent to 7 percent of GDP.\"\u003cbr /\u003e\u003cbr /\u003e(Additional reporting by Karen Pierog; Editing by Kenneth Barry)\u003cbr /\u003e\u003c/span\u003e\u003cdiv class\u003d\"blogger-post-footer\"\u003e\u003cimg width\u003d'1' height\u003d'1' src\u003d'https://blogger.googleusercontent.com/tracker/7676161-6673099328436675654?l\u003defhutton.blogspot.com' alt\u003d'' /\u003e\u003c/div\u003e"},"link":[{"rel":"replies","type":"application/atom+xml","href":"http://efhutton.blogspot.com/feeds/6673099328436675654/comments/default","title":"Post Comments"},{"rel":"replies","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-likes-muni-bonds-and.html#comment-form","title":"0 Comments"},{"rel":"edit","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6673099328436675654"},{"rel":"self","type":"application/atom+xml","href":"http://www.blogger.com/feeds/7676161/posts/default/6673099328436675654"},{"rel":"alternate","type":"text/html","href":"http://efhutton.blogspot.com/2009/01/pimcos-gross-likes-muni-bonds-and.html","title":"PIMCOs Gross likes Muni Bonds and Treasury Inflation Protected Securities"}],"author":[{"name":{"$t":"Bob DeMarco"},"uri":{"$t":"http://www.blogger.com/profile/14861703129474871916"},"email":{"$t":"rtdemarco@gmail.com"},"gd$extendedProperty":{"xmlns$gd":"http://schemas.google.com/g/2005","name":"OpenSocialUserId","value":"02937219926706406775"}}],"thr$total":{"xmlns$thr":"http://purl.org/syndication/thread/1.0","$t":"0"}}]}});