Bill Gross, chief investment officer for bond fund giant Pimco, thinks the trillions of dollars being showered on the world’s ailing banks might be doing some good.
Gross said Friday that the coordinated moves by global finance ministers and central banks would loosen credit soon enough, pulling the world back from the brink.
"We're talking weeks here," Gross told Bloomberg News.
Last week, Gross called on the Federal Reserve to cut the benchmark rate to 1 percent. It’s currently at 1.50 percent, after an emergency cut of 50 basis points in conjunction with global rate cuts.
Stock investors seem to agree.
After a nutty week of gains and losses based on little news and even less fact, the Dow turned higher on Friday, surpassing 9,000 in mid-afternoon trading.
"I think we're beginning to get a slightly better feeling in the credit market," Peter Cardillo, chief market economist at Avalon Partners Inc., told the Associated Press.
"I'm sure we'll still have a strong bear grip to the market but I do believe the market was way oversold. I do believe we've made a bottom."
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