well you know bill gross huge investor runs the world's largest gone fund so he has a major stake in this market but he's essentially saying and pointing out what everybody is you know q e z has been a very high profile program where the fed has been clearing all of this money out of the market buying u.s. bonds eyeing up u.s. treasuries so what it's essentially been doing is propping up that market six hundred billion dollars this time the first one right before that one point five trillion dollars so trillions of dollars that have been boosting up this market and bill gross his assertion is that when that money is gone there may not be the private investment to replace it and that this market could totally tank that bonds could taint and that's the argument that he's making and pretty strong words this time but he has been down on bonds and how to bearish outlook for quite some time he's just using some pretty severe language in this latest now is there any chance that the federal reserve isn't going to go along with their schedule that on june thirtieth they aren't going to cut th

stocks and bonds bill gross of pimco who runs the world's largest bond fund has dumped u.s. treasuries and billionaire hedge fund manager carl icahn is giving investors their money back and talking about the possibility of another market crisis and what do they know that we don't and why am i ben bernanke in the federal reserve be to blame are the financial correspondent lauren lyster joins me from now one from new york. or let's talk about what's going on with these investors are also with bill gross why is he dumping government bonds and why is this a big deal. well this is a big deal because bill gross runs the largest bond funds in the world not only is it the largest but it's extremely successful it's been the top performing bond fund over the last fifteen years outperforming eighty five percent of its peers so it's done a really good job he's a very well regarded investor very powerful investor and in his last month you know he was rallying against us treasuries which pimco has recently as three months ago held twenty two percent of their holdings and so they were majo

stocks and bonds bill gross of pimco who runs the world's largest bond fund has dumped u.s. treasuries and billionaire hedge fund manager car i can is giving investors their money back and talking about the possibility of another market crisis so what do they know that we don't know joining me from our studio in new york is our chief correspondent financial correspondent lauren lyster who are in you know this is so funny because just the other day i was talking about bill gross and how he had said that june thirtieth of this year is going to be d.-day because that's when the q.e. two program runs out now we found out that he's just dumped all the government bonds is this something that we should be panicking about or is this really in his best interest. well either way it's definitely something of note like you said we were just talking about his monthly note last week and at that time many people thought that this could just be him posturing it could just be talk him talking his book him you know having a negative report but nobody really knew if there was anything to back

stocks and bonds the bill gross of pimco who runs the world's largest bond fund has dumped u.s. treasuries and billionaire hedge fund manager carl icahn is giving investors their money back and talking about the possibility of another market crisis so what do they know that we don't and why my ben bernanke and the federal reserve be to blame r t financial correspondent moralists are joins me now with more from new york. hi there lauren let's talk about what's going on with these investors and you know i guess we'll start with bill gross why is he dumping government bonds and why isn't even a big deal. ok so bill gross last week came out with a report saying that the end of quantitative easing number two which is supposed to wrap up at the end of june it's the government's buyback program for federal grants or government bonds treasuries he said when that it's going to be d.-day so at that time it got a lot of attention that people didn't know you know is talking his book it's rhetoric although they have a great research team it has a great track record people didn't really know

maybe a disaster at the web site that released this information on bill gross is holding on tempos holding say it's time to panic is bill gross believe that this means get out of stocks and bonds and securities it's going to be trouble if there's no q e three and i mean that's the worst case scenario they say time to panic all right archie financial correspondent laura lister joining us from the financial capital of the world new york of course and that is going to do it for now for more on the stories we cover or go to our team dot com slash usa i'm christine for south thanks so much for watching. her brought her here. we here because of our passion that. god promised them this is the land belongs to. will if they are still going to be thinking. god chosen people will believe that god is used to look at the stuff just for you guys and this guy is as. good as the word this is a word. this is more than. double. imax ties are and this is the kaiser report once again coming to you from cairo egypt the global insurrection against banker occupation continues multifaceted conflict between oligar

joining us now: william gross, the founder and co-chief investment officer of pimco. hi, bill, nice to have you here with you. >> hello, susie, thank you very much. >> susie: so your pimco return fund has had great returns up so far this year, it was up 8% last year. tell us why are you selling treasuries now. >> we haven't lost faith in the u.s. government. america is still strong and the economy is growing, and we have perhaps 30 or 40 billion dollars worth of u.s. treasury bills. but those are shorter maturity obligations. so the argument really that we have is really a one of valuation. we simply think that longer dated treasury yields, and to cite a few examples, two-year at 70 basis, and five-year treasuries at 2% plus or minus simply are not reflective of where they should be or eventually going. if yields in longer dated segments then prices move lower. so it's not a negative thing in terms of the u.s., it's simply a overevaluation in terms of price. >> susie: so what would make you a buyer again? where would you have to see the yields on these various bonds? >> well,

especially on bonds, because last week your colleague bill gross was on our program and told us that pimco was selling all its u.s. treasuries and now they've been rallying since his appearance. is it still safe to say that to stay away from treasuries and what's also your outlook on stocks? >> we can find better value, we think, in the fixed income market. so the fixed income market is much more than treasuries, there's lots of other bonds in the fixed income market that we believe offer better risk adjusted return over time. >> susie: like what? >> like, for example, certain very senior corporate bonds, where you get a advantage on the interest rate over treasury bonds and then near not as vulnerable. and there's other opportunities as well globally. it's important to remember that this is a global market. on the stock side, we are going to see a period of very volatile stock crisis as the markets price in this big uncertainty. and you're going to see it particularly also in the foreign exchange market. today the foreign exchange market was moving in ways that people didn't think w

the marketplace now if you take the fed which is the biggest buyer of its own paper you've got bill gross of pimco saying you know what the fed is removed from the equation and japan is no longer buying china's no longer buying it's no longer this artificial market who's going to be buying u.s. treasuries i don't keep interest rates artificially cheap then as i just told you if interest rates are zero percent you will have buyers at a minimum let's just say the scenario is just research your percent the fed stops buying that's a crisis stop being elevated you have systemic crisis of some sort united states g.d.p. swoons the media. people will go to treasuries as you know because of the flight to safety you know bill good treasuries a risk assets you have a perfect scenario rate there for a decrease in interest rates as i say if if the fed says you know twelve months out the economy's looking bad we're going to have rates at zero percent obviously if you're buying a twelve month a one year treasury why would you pay three percent for the treasury when in fact the fed is already told you th

we'll have to give us all the deals are ninety nine cent stores now lastly some people out there bill gross especially of pimco saying that june thirtieth this year is going to be d.-day because that's when the quantitative easing program expires the fed will no longer be you know injecting seventy five billion dollars into the markets every month do you buy that i don't really i think that will do two three things look here first of all there's a question of how much this program has actually done it's probably done a little keeping interest rates low but really demands always been a problem in this recession and it's not clear that it's really contra that much more compatible consumers but secondly it could actually help in a sense if it's causing prices to rise that could be part of the reason why we're seeing from prices going up and gas prices going up so without that part of it it isn't without prince and more money perhaps prices will rise as quickly and with those under control because it will be better off well that's definitely what a lot of people are hoping for internationally t

bill gross, who runs the world's biggest bond fund at pacific investment management, a tota total -- the big bond fund -- announced that they had totally eliminated u.s.-government related debt from their flagship -- ship fund. "as the united states government projected record deficits." so that's a big development, frankly. i more money than anyone in the world i guess in the history of the world. he's eliminated government debt from the total return fund. and, that was just announced. was that something we should be concerned about? i think it is because, who is going to buy our debt? who will buy our treasury bond at now 10-year bonds at.5% or so interest? -- 3.5%. people get worried about the their debt. you sell the bonds. who will then buy them? where will we get people to buy our bond without paying higher and higher interest rates? and, well, we're, is our crisis coming upon us? let me share with you the testimony that mr. simpson and mr. bowles gave to the budget committee just two days ago. this is what mr. bowles said. co-chairman appointed by president obama. he's very wo

bill gross, who runs the world's biggest bond fund at pacific investment management, a tota total -- the big bond fund -- announced that they had totally eliminated u.s.-government related debt from their flagship -- ship fund. "as the united states government projected record deficits." so that's a big development, frankly. i mean, he manages more money than anybody in the world, i guess, in the history of the world. he's eliminated government debt from the total return fund. and that was just announced. so is that something we should be concerned about? i think it is. because who's going to buy our debt? who will buy our treasury bonds at now 10-year bonds at 3.5% or so interest? people get worried about your debt. they sell their bonds, who's going to buy them? where are we going to get people to -- to buy our bonds without paying higher and higher interest rates? and -- well, we're -- is our crisis coming upon us? let me share with you the testimony that mr. simpson and mr. bowles gave to the budget committee just two days ago. this is what mr. bowles said, co-chairman appointed

we've seen bill gross of the pimco bond fund, the largest fund in the world saying they're not buying any more u.s. treasuries, basically a call on the united states to reduce our debt. he didn't have confidence in it, not willing to buy it any more at the rates we're offering. so we need to get busy and do some things. and it's going to have to be done in a bipartisan way; there's no doubt about it. so there are two choices, mr. president. i believe truly one is a tougher road, but it's the road to prosperity. it can return us to the kind of leadership role in the world we need to be on, and the other road is the road to decline. you know, nothing comes from nothing. nothing ever could, julie andrews sang. there's no free lunch. debts have to be paid. interest has to be paid on debts. this is reality. we don't live in a fantasy world. so the time to stand and be counted is now. this $61 billion reduction in spending through the last seven, six and a half or so months of this fiscal year is a statement. it's actual. it's real. it will reduce the total indebtedness by $861 billion over

bill gross, who runs the world's biggest bond fund at pacific investment management, a tota total -- the big bond fund -- announced that they had totally eliminated u.s.-government related debt from their flagship -- ship fund. "as the united states government projected record deficits." so that's a big development, frankly. i mean, he manages more money than anybody in the world, i guess, in the history of the world. he's eliminated government debt from the total return fund. and that was just announced. so is that something we should be concerned about? i think it is. because who's going to buy our debt? who will buy our treasury bonds at now 10-year bonds at 3.5% or so interest? people get worried about your debt. they sell their bonds, who's going to buy them? where are we going to get people to -- to buy our bonds without paying higher and higher interest rates? and -- well, we're -- is our crisis coming upon us? let me share with you the testimony that mr. simpson and mr. bowles gave to the budget committee just two days ago. this is what mr. bowles said, co-chairman appointed

voted for that february, 2011, republicans pass a spending bill that could destroy 700,000 jobs and reduce , slow down, our g.d.p., our gross domestic product, by 1.5% to 2%. if you want to say it's going to beless than that, it's going to slow down less than that, it's still going in the wrong direction. mr. dicks, i commented on his proposal because in the bill that we had before -- that we have before us, we have a situation where the republicans have stripped the bill of important initiatives for the education of our children. in fact, president obama made some of those cuts too. but he didn't do it in a way that hurt the children. what we -- what we debate today hurt ours future by taking money from those facing challenges without redirecting critical resources to meet the needs of our children. what mr. dicks proposed would have reversed that. he would have taken those programs away in a budget that would have redirected funds to other initiatives addressing these needs. if we do not, as a congress, understand that education is essential, is key to all of our success, key to all of our success, then frankly, the ameri

but this is a job creation bill. 9.2% of the gross domestic activity in this nation depends on this industry. we count on this and as i said, inless than four months, the other body, the senate has passed the bill, we're ready to go to conference, we've asked for one extension to accomplish this. and this bill has excellent provisions. finally, you'll hear them moan and groan about some labor provision that we're -- someone described that we're taking away democratic rights and all of this for union members. couldn't be further from the truth. we've had 70-something years of rules under organizing for labor where we've always had a majority of those who were affected to have to vote in a union, now they want to change it to whoever shows up. they have multiple elections, and that's what they're asking for. little caveat here, i hope everyone is listening, madam chair, what they tnt do is to desert fi to get out of the unions, they left the old rule in place, has to be a majority of everyone who is affected, they'll tell you that, you know they didn't let woman vote -- women vote a long time

gross. imagine a stadium floor with the popcorn and crusty beer. >> that's an old tradition, wet field, diving maybe not your underwear. >> yeah. it makes for good video, right, bill? >> that's great. >>> time for a look at the stories we'll follow throughout the day on nbc. the navy will release its findings into watching videos on the uss enterprise. and announce actions being taken against those responsible. the carrier's commanding officer has been fired over the videos. >>> with no resolution in the labor dispute between the nfl and the players' union, a lockout looms. the current collective bargaining agreement expires at midnight. >>> as we mentioned, with an anniversary for the star-spangled banner. on this day in 1931, president herbert hoover made the song the national anthem of the united states. >>> all day long, you can stay on top of the very latest developments in those stories and others as they break on msnbc. and tonight be sure to watch brian williams with nbc "nightly news." >>> and, finally, here's a look at what's coming up later this morning on the "today" show. the very latest on the bitter battle between troubled actor charlie sheen and hi

gross estimate is correct? and i don't. so that leaves me in the position where the bill that i had directly only applied to the offset to the gross stimulus. i heard the order of magnitude of that is of itself it doesn't meet the standards turned negative. but i had very serious concerns and about what the actual impact will the players are especially and i am still struggling to find a mathematical move by which i can convert rhetoric into numbers to this but let me ask about another aspect of this. in the paper, you say that the one area which the government in effect left alone at the equity market has recovered strongly. and the 35 trillion or so of guelph lost has been three-quarters of that has been recovered. >> its global. >> and it's also provocative because it implies that the one engine that's working for example the intended wealth effect stand so long is the equity price which is not the object in the government response and in the implication is by leaving it alone is managed to recover quickly and have a quite powerful affect on household balance sheets and the propensity to spend households and so forth. i t

gross and systematic human rights violations. that is not permanent, but libya would need to be restored to full status. lynn. >> tracie, thanks so much. >>> the senate is expected to approve a temporarily funding billter today that will prevent a government shutdown this friday. the measure which also cuts spending by $4 billion passed the house yesterday on a bipartisan vote of 335-91. president obama is expected to sign the two-week extension into law, but democrats still remain steadfastly opposed to a longer republican plan which would cut more than $60 billion through september. now here's a look at some other stories making news early today in america. >>> in washington a natural gas explosion earlier this week was caught on cell phone camera. investigators say the eruption of flames was sparked by a fire at a bus fueling island inside a local transportation headquarters. firefighters gained control of the fire within an hour. >>> in massachusetts a store clerk turned the table on a would-be robber's attempt to hold up her store. after being threatened with a knife, she struck back with a weapon of her own and chased the suspect out of the store. the store clerk says she was afraid, but acted

what family of three making $74,000 annually gross can afford an unexpected $12,000 tax bill in april? i can't think of many, but that's exactly what could happen under the gentleman's amendment. that was not the case -- not the case -- in the provision that was enacted at the end of last year in the doc fix. we provided a phaseout that would have avoided this cliff and, thus, tax shock on middle-class families. the gentleman from nebraska also said my second-degree amendment was just a delay tactic. that simply isn't true. i and 80 of my colleagues have already passed 1099 repeal in the senate this year. soso to question our support for the 1099 repeal would be misleading. my understanding is that the johanns proposal amendment to the small business we're debating has not passed the house. this amendment we're debating would not go directly to the president for his signature. it has to go through the process in the house. we're not delaying anything in that regard. finally, the only way that there would be any revenue shortfall here, those who would make the assertion that our amendm

voted for that february, 2011, republicans pass a spending bill that could destroy 700,000 jobs and reduce , slow down, our g.d.p., our gross domestic product, by 1.5% to 2%. if you want to say it's going to beless than that, it's going to slow down less than that, it's still going in the wrong direction. mr. dicks, i commented on his proposal because in the bill that we had before -- that we have before us, we have a situation where the republicans have stripped the bill of important initiatives for the education of our children. in fact, president obama made some of those cuts too. but he didn't do it in a way that hurt the children. what we -- what we debate today hurt ours future by taking money from those facing challenges without redirecting critical resources to meet the needs of our children. what mr. dicks proposed would have reversed that. he would have taken those programs away in a budget that would have redirected funds to other initiatives addressing these needs. if we do not, as a congress, understand that education is essential, is key to all of our success, key to all of our success, then frankly, the ameri

and gross misallocations of the awards that were released and the county in support of my bill said, we believe it is a means for congress to get its financial house in order just like the challenges we are facing at the local government level. and not only government facing challenges, the american people are facing challenges. they're working hard, they're trying to support their families, they're trying to make their house payments, nothing in this last billion dollars will stop one foreclosure from occurring and i yield back the balance of my time to the gentleman. >> thank you to the good gentleman from california, mr. chairman. look, i've been a member now of this body for 75 some days. and i'm starting to learn much of what we do seems to be more based in theater than reality. if this -- if i read this amendment correctly what we're trying to do here is add language that basically says, well, we could repair neighborhoods with the last billion dollars, of course it didn't happen with the previous money, but think about it, if we take a step back, what's the money being used ul

whether you view it in terms of the gross domestic product or you view it in terms of the number of jobs of americans taken away by the job-killing republican plan, this bill is a disaster, house resolution 1 that we'll be voting on later today. i want us to focus on this number because i can tell you folks back home in oregon want to create jobs. they want us to put america back to work. they don't want to have a plan put forward that continues to pay enormous bonuses to the billionaires of wall street and creates enormous special tax bonuses for the millionaires who are making their tax returns while taking out this huge, huge economic meltdown on working people. now, let's review how this all came to pass. you will recall that during the second bush administration, there was a plan to take and launch two foreign wars and not pay for them, and then proceed to create medicare part-d and not pay for it and then to give bonus tax breaks to millionaires and billionaires and not pay for it and reverse an enormous annual surplus and turn it into an enormous annual deficit, and in the process produce a very tiny, modest expansion in which working people actuall