Zeev's Turnips Patch-No Politics (ZEEV)

[Bearmove]

"Foreigners aren't going to let us off the hook easily," Gross says. And any exodus out of U.S. assets could have a "real fire-in-the-theater potential," he says.

Of course, the Fed could try to forestall a disastrous run by buying up the domestic assets that foreigners sell - a move that Gross admits would soften the blow temporarily.

"But ultimately," Gross says, "if the Fed has to do those sorts of things ... that's a perversion of capitalism as I know it and it would not be conducive to the long-term health of the economy."

http://www2.ocregister.com/ocrweb/ocr/article.do?id=21205§ion=BUSINESS&year=2003&mon...