Janus Capital's Bill Gross is 'Doubling Down"
Janus Capital's Bill Gross is 'Doubling Down" in his October Investment Outlook, to wit: "This same mathematical logic seems to have eluded central bankers around the globe. They are quite simply, employing a Martingale System in the conduct of monetary policy with policy rates now in negative territory for both the ECB and the BOJ -- which in turn have led to over $15 trillion of negative yielding developed economy sovereign bonds. How else would one characterize the 'whatever it takes' statement by Mario Draghi in 2014? How else would one interpret BOJ's Kuroda when just last week he upped the ante in Japan by capping 10 year JGB's at 0% until inflation exceeds 2% per year? How else would a rational observer describe Carney and Yellen other than 'Martingale gamblers with a wallet or a purse?' He argues that in this casino-like atmosphere 'investors/savers are now scrappin' like mongrel dogs for tidbits of return at the zero bound. This cannot end well.'"