Pimco Says Fed Is Underfunded

To further add to the confusion about how much money the federal government will need to stimulate the economy out of recession, Pimco, the huge bond house, says that the Fed is underfunded by trillions of dollars.

According to Reuters, “Liabilities on the Fed’s balance sheet should rise to between $5 trillion and $6 trillion later this year amid the financial crisis that roiled global markets, said Brian Baker, chief executive Pimco Asia Ltd.”

Pimco failed to say how the Fed would come up with the cash.

Douglas A. McIntyre