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Bill Gross: "Bail Out Housing Now!"

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The most famous bond manager in the world, Bill Gross of Pimco, is calling for the government to engage in a wide-ranging bailout of housing assets. In a noteposted on the Pimco Web site today, Gross paints a dire picture of a financial system caught up in a runaway delevering and concludes that the Treasury must not only bailout Fannie and Freddie but subsidize housing more generally.

And now, while some will compare current government bailouts to Slick Willie, citing moral hazard, near criminal regulatory neglect, and further bailouts for Wall Street and the rich, common sense can lead to no other conclusion: if we are to prevent a continuing asset and debt liquidation of near historic proportions, we will require policies that open up the balance sheet of the U.S. Treasury - not only to Freddie and Fannie but to Mom and Pop on Main Street U.S.A., via subsidized home loans issued by the FHA and other government institutions.

There's a Bull Market Somewhere?
[Pimco via Fortune]