Is Bill Gross Simply Talking His Own Book?

Very often I receive Bill Gross’s commentary from my friends who trade bonds for a living. Although I want to include Bill’s thoughts into my commentary, I usually do not simply because I feel like the Bond King is always talking his own book.

For those unaware, “talking your book” is Wall St. slang for spinning commentary in favor of the speaker’s investments or business interests. In this case, Bill Gross manages the largest pile of bonds in the world, so he naturally skews to a bearish bias.

In Gross’s defense, he has very good reason to be bearish. And if anyone has a bird’s eye view of the debt problems in the world, Gross certainly does. With that said, it’s also in Gross’s interest to keep demand for bonds high. When equity deals and stocks are favored over debt deals and bonds, Gross loses.

So, with all due respect, when I see Gross making public statements about 2010 being a year of reckoning, I run to my kitchen and take a tablespoon of salt.

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