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Bill Gross tips his hand Add to ...

Bill Gross is fretting out loud about the U.S. housing market and the role of the government in aiding and abetting it. In fact, a bit more out loud than he had intended just yet.

Bond-fund giant Pacific Investment Management Co. LLC (PIMCO), where the famed Mr. Gross is founder and chief investment officer, sent out an e-mail this morning to clients and subscribers notifying them that Mr. Gross's latest monthly market commentary was available on its website. The commentary, the e-mail informs us, is entitled "Mr. Gross Goes to Washington," and it addresses issues surrounding the health of the housing market and the dangers of Washington reducing its involvement in the home-mortgage business.

Problem is, the commentary hasn't actually been posted on the website The e-mail was sent prematurely. Mr. Gross's article won't see the light of day until later this week, we're informed on the website.

So what we're left with is a teaser for what we can expect when Mr. Gross's commentary does, in fact, see the light of day. This teaser comes in the form of three "key points" highlighted in the e-mail, which we include, verbatim, below:

- "Americans now know that housing prices don't always go up, and that they can in fact go down by 30%-50% in a few short years."

- "Having grown accustomed to a housing market aided and abetted by Uncle Sam, the habit cannot be broken by going cold turkey into the camp of private lending."

- "Private mortgage lenders will demand extraordinary down payments, impeccable credit histories and significantly higher yields than what markets grew used to over the past several decades."

There's not a lot there, but enough to provide some interesting food for thought that, presumably, Mr. Gross will chew on in his usual colourful and opinionated detail when the time comes. As usual, it promises to be an interesting read.

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