Bill Gross to save the economy?

One of the biggest winners in the credit mess has been Bill Gross, the co-chief investment officer at PIMCO. He famously went long on agency bonds and scored a $1.7 billion gain on the day the two GSEs were bailed out. But he has even bigger ambitions now. He wants to manage the $700 billion government bailout--for free, according to the New York Times. Gross certainly has the staff and some big ideas about how a bailout ought to be run. For one thing, he's skeptical about giving the government equity in banks seeking aid. He says the bonds themselves, if valued prudently at purchase, should deliver gains over time in the 12 to 13 percent range. And that's what the government really wants: lower costs. He would advise paying something like 60 to 65 cents on the dollar for most mortgages. He does favor more aggressive relief for homeowners.

For more:
- here's the New York Times article

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