PIMCO poised to become the Federal Reserve’s PIMP-CO

By Anthony M. Freed

PIMCO‘s head pirate Bill Gross is set to put his mouth where his money is, and the Federal Reserve may officially anoint the World’s largest bond fund as chief paper-pusher for the Wall Street Bailout debacle in yet another blatant example of insider sweetheart deals struck at the American taxpayer’s expense.

Fed Eyes Pimco to Manage New Facility: The New York Federal Reserve on Wednesday said it was in discussions with Pimco about managing assets in support of a new mechanism through which the government can buy massive amounts of unsecured short-term debt.

Much like the ethically challenged JP Morgan deals of late, it seems PIMCO just happens to be in the right place at the right time to become one of the chosen few to who will repeatedly benefit from the nation’s financial troubles while simultaneously trying to pawn himself off as some kind of savior.

It is clear now that the fox has struck a devils-deal with the farmer’s dog, has free run of hen house, and is opening a fried-chicken joint.

Is it any coincidence that PIMCO hired former Federal Reserve Chairman and bubble-manufacturer extraordinaire Alan Greenspan in 2007 and they now find themselves “in” with the Goldman Sachs crowd?

Or is the case actually that Paulson and Bernenke simultaneously bought themselves a powerful ally in their efforts to implement a militant form of corporatism as they removed the threat that the extremely deep-pocketed PIMCO – and it’s uncomfortably outspoken CEO Bill Gross – may have posed to their plans. The price? A mere $1.7 Billion taxpayer dollars, that’s all.

Bail-out hands Pimco $1.7bn payday: The Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae and Freddie Mac.

While shareholders in Fannie and Freddie suffered deep losses, the world’s biggest bond fund saw its highest ever one-day rise against its benchmark index on Monday, benefiting from the bet made by Mr Gross on mortgage bonds issued by the agencies.

By contrast, several well-respected equity fund managers are suffering in the wake of the government move, which leaves Fannie and Freddie stock almost worthless. Legg Mason’s Bill Miller, Fidelity, Dodge & Cox and Wellington are among the fund managers that had heavy exposure to Fannie and Freddie – and had lifted that further this year, according to Bloomberg data.

Now PIMCO’s Gross is suddenly a Patriot who is apparently offering to unravel the largest and most complicated financial Ponzi Scheme in the history of the World absolutely free of charge.

Do they really think we are so stupid as to believe Gross’s offer to take on the task of the millennia merely for charitable reasons?

Gross to Manage TARP for Free: Here is an interesting twist: PIMCO’s Bill Gross, manager of the worlds largest bond fund, has offered to manage the new $700B+ fund of bailed out, junk assets — for free!

“One of the many concerns expressed on Capitol Hill this week about the Treasury Department’s $700 billion rescue plan was how to keep the Wall Street firms that helped to create the crisis from making a killing if they are hired to help contain it.

William H. Gross, the manager of the country’s largest bond mutual fund, has a solution for that: He is offering to do it free. Mr. Gross explained his offer – which he later repeated, without the caveat about other firms following his lead – as a philanthropic one.

It seems there is absolutely no one left to trust in these matters – at least no one who can actually do anything to affect the ever worsening crisis.

Who can we appeal to for justice when the corruption is so insidious that it doesn’t warrant even the most modest attempts to cover-up the crimes? Who will look out for the interests of the American taxpayer now that the mechanisms for regulation have been completely handed over to the very Robber-Barons they were created to thwart?

The time has come for Americans to abandon the belief that the Institutions of Democracy are still serving their best interests, because they clearly are not. They most certainly have been usurped by the most banal motivation for power we are capable of, that of sheer greed.