Gross Says Avoid Europe Until Private Solution: Tom Keene

Pacific Investment Management Co.’s Bill Gross said investors should avoid Europe until credit begins flowing again from the private sector as government solutions aren’t enough to stem the region’s debt crisis.

“We would suggest at Pimco avoiding the entire euro zone until they can come up with some type of solution which involves the private sector,” Gross, manager of the world’s biggest bond fund, said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “What does the private sector mean? It means those institutions outside of euro land. It does mean Pimco, it does mean China, it does mean those private institutions that are willing to take a chance again in terms of credit. Until you bring them back then no solution is really going to be possible.”