i pretty much agree with his general explanation -this has been a deleveraging and has impacted the markets that were most leveraged (in short term).

It is also there is a spring in his step while writing that - PIMCO was one of the only buyers of mortgages in past few weeks ahead of FNM/FRE bailout, they had windfall yesterday in the billions (mortgages tightened 2 point and only widened today about 6 ticks)

I am not sure Mr. Gross understands energy howerver. I wonder if he will be attending ASPO - last year I would say about 1/6 of attendees were hedge fund types...

I came across this article this evening which may be of interest to you. Don Coxe writes BASIC POINTS for the Bank of Montreal and has been very bullish on oil for the past +5 years.

This article gives another aspect to what is occuring in the markets.

http://www.globeinvestor.com/servlet/story/GAM.20080910.RHEINZL10/GIStory/