Bill Gross Is Losing His Mind

Seriously.

“To suggest that there’s a large place for private financing in the future of housing finance is unrealistic,” Gross said today at a U.S. Treasury Department conference in Washington. “Government is part of our future. We need a government balance sheet. To suggest that the private market come back in is simply impractical. It won’t work.”

This is pure bonkers. Lending to credit-worthy homebuyers was a safe and profitable business for US banks for over a hundred years before the government got involved (that whole "credit-worthy" thing was the problem). It can be again, easily, we just have to get the government completely out.