of pimco, the world's largest bond fund. mohammed, nice to see you again. >> thank you, susie. >> susie: now you've been critical of the fed's plan to buy these billions of dollars of government bonds. what your biggest criticism? >> i think three issues, susie. first they are using a very blunt instrument. secondly, they are moving on their own. no other u.s. agency is moving with them. and thirdly, the rest of the world is very anxious and therefore the rest of the world could end up doing something that yun mines what the fed is trying to do. so put all that together, and what you get is anxiety everywhere. not only within with the u.s. but also globally. >> susie: and we did get a sense of some of that anxiety today. the world seems to be watching us and they're watching our economic and monetary policy and as we just reported a number of foreign officials criticizing u.s. policy. are those criticisms justified? >> yes and no. yes in the sense that we where facing structural problems. and structural problems require stru

likens us to ponzi scheme this is bill gross who manages two hundred fifty billion dollars pimco bond portfolio he wrote in his newsletter to his clients check writing in the trillions is not a bondholders friend it is in fact inflationary and if truth be told somewhat of a ponzi scheme so he argues that creditors have always expected to be paid out a future growth but now he says growth in dow it seems the fed has taken ponzi one step further the fed has joined the party itself has there ever been a ponzi scheme so brazen there has not been so need to examine a little bit because everyone knows the ponzi scheme concept from the bernie made off scandal that has new money came in you pay out old investors and he built those pyramid and what pimco is saying bill gross i guess is that the fed now by joining together various elements of the banking and and government systems is able to create the mother of all ponzi schemes and the suckers who are coming in at this point this is the money that will almost guaranteed be lost well that's right and so he's talking about the fed's expected an

away with his pension fully intact yet he's working for over there pepco with bill gross advising pimco and the tories front runner an insider trader so you guys make good money doing fraudulent activities while in office out of office you probably can't go to the bathroom without committing some fraudulent activity thankfully my final note here this was sent in by a viewer of the show who actually is using one of these mac's kaiser gold coins here's a picture of oh i sent an email to demanded evidence that put my picture on the new russian global gold coin not haven't heard anything back yet and then finally max you know those gold coins as max keiser gold coins might come in useful for the final savers versus speculators dead or versus creditor bubble of all jeremy grantham the fed is creating its last bubble. so he said to. what i worry about. the fed's activity. q e two is just the latest demonstration of this the fed has spent most of the last fifteen twenty years. in the stock market whenever they feel the economy needs a bit of a kick well yeah i mean that's the that's the basic

at the amount of debt we have, housing debt, not just at fannie and freddie, but in general, debt, pimco'sonds, obviously the pension funds. everybody has different sort of versions of this debt. the homeowner themselves. do you with see a way out of this that does not ultimately result in some form of either principal write-downs or meaningful restructuring of the debt and how it's going to be paid out of here considering how much of it there is and what the other variables are? >> there's certainly going to be some principal write-downs. there are these short sales that are happening more and more, and that's one way. i think the banks are doing the principal write-downs. it's hard to do it in the mortgage-backed security because the servicer does not have the power to do it. i think going forward, there's some moral hazards when you do principal write-downs. you have to be careful to people who really can't afford it. >> at the same time, when it comes to moral hazard, when you look at the bonus pool on wall street, the ship seems to have sailed for moral hazard. we've got a taxpayer su

or when pimco stands there and says, wait a minute, our investors are going to go bust or when the banks show up and say we ended up with all these debts on our hands or with all these obligations. we're going to tell them to suck it up. i think it will end like europe, which did not really have a choice between bailing out greece or not bailing out greece. it only had a choice between bailing out greece or bailing out the french and german banks and that is an utterly unattractive choice so that brings me to the last option. you could have an orderly process to settle the accounts and to make people whole to the extent that you can. when a state goes bust it will be too late to design a process like that. it's really complicated. there's constitutional questions so i think starting that work now would be an act of federalism foresight and responsibility. >> thank you, michael greve. david mcintosh? >> thank you, thank you, matt. what i wanted to share with you today were some observations about having served in both the executive and the congressional branches. the ability to move towar

or when pimco stands tre and says, wait a minute, our investors are going to go bust or when the banks show up and say we ended up with all these debts on our hands or with all these obligatis. we're going to tell them to suck it up. i think it will end like europe, which did not really have a choice between bailing out greece or not bailing out greece. it only had a choice between bailing out greece or bailing out the french and german banks and that is an utterly unattractive choice so that brings me to the last option. you could have an orderly process to settle the accounts and to make people whole to the extent that you can. when a state goes bust it will be too late to design a process like that. it's really complicated. there's constitutional questions so i think starting that work now would be an act of federalism foresight and responsibility. >> thank you, michael greve. david mcintosh? >> thank you, thank you, matt. what i wanted to share with you today were some observations about havingerved in both the executive and the congressional branches. the ability to move towards a

or when pimco stands there and says, wait a minute, our investors are going to go bust or when the banks show up and say we ended up with all these debts on our hands or with all these obligations. we're going to tell them to suck it up. i think it will end like europe, which did not really have a choice between bailing out greece or not bailing out greece. it only had a choice between bailing out greece or bailing out the french and german banks and that is an utterly unattractive choice so that brings me to the last option. you could have an orderly process to settle the accounts and to make people whole to the extent that you can. when a state goes bust it will be too late to design a process like that. it's really complicated. there's constitutional questions so i think starting that work now would be an act of federalism foresight and responsibility. >> thank you, michael greve. david mcintosh? >> thank you, thank you, matt. what i wanted to share with you today were some observations about having served in both the executive and the congressional branches. the ability to move towar