Gross Praises S&P’s ‘Spine’ as Buffett Says Analysts Erred

Bill Gross, manager of the world’s biggest bond mutual fund, said Standard & Poor’s showed “spine” by cutting the U.S. debt rating, contradicting Warren Buffett and Legg Mason Inc.’s Bill Miller, who said the rating company erred.

“I think S&P has demonstrated some spine; they finally got it right,” Gross, who has been critical of Treasuries for months, said in a Bloomberg Television interview with Tom Keene yesterday. The U.S. has “enormous problems,” he said, referring to the country’s mounting debt.