I see Timmy G headlined at the Comedy Store with Billy G being the heckler. 

Where do you think supply of capital that will fund our mortgages comes from?  Pension, endowment and trust funds, SAVINGS?  Yes these are the source for all capital investment from around the world.  Our home mortgages must compete for that capital as any other investment competes for investment capital, on risk adjusted expected returns. 

Bill Gross is complete wrong from a fiscally conservative political perspective -  his solution is just a bad as the government take over of health-care.  We need to get the U.S. Treasury and Federal Reserve hedge funds out of the market and let investments compete for the investment capital.  It is embarrassing to think all those investment professionals (myself a CFA) cannot rationally allocate our clients capital without implied or expressed government guarantees.  For Bill Gross to declare himself incompetent and cannot select fixed income investments for his clients (I am not one) and needs the explicit guarantees from the taxpayer in order to manage funds is astounding.  (If I was a PIMCO client, I would withdraw my funds immediately)

Wall Street can easily rate and aggregate mortgages and fairly disclose the contents of the security issued.  Professionals like myself should be able to determine if I want 700+ credit scored, 15 year fixed rate mortgages for my clients accounts or sub 500 floating rate ARMS - vastly different risks and it should be expressed in expected return.  Apparently Mr. Gross cannot make those determinations without the government guaranteeing his position of heads he wins and tails the taxpayer loses.