Pimco's El-Erian Conducting Live Q&A

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Thu, 07/07/2011 - 09:59 | 1432254 gigeze787
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Gee, its almost like he's running for office...maybe Secretary of the Treasury?

Pro: He probably does not cheat on his taxes.

Con: His name might be a problem for Mr. Obama....but it would be fun to watch the Fox News rabble go beserk at the appointment...and the GOP Senators try to explain why Mr. El-Erian is not qualified, but Geitner somehow was.

Thu, 07/07/2011 - 11:54 | 1432748 Weisbrot
Weisbrot's picture

how can Hussein 0bama have a problem with Mohamed El_Alarian?

oh yeah,

the 1st 1 is a corrupt teleprompter puppet and the 2nd seems to be honest.

since there is no place for honesty (working for the general population)  in government, El-Alarian is out.



Thu, 07/07/2011 - 10:00 | 1432257 Zer0henge
Zer0henge's picture

Flight to *Quantity* Bitchez!

Thu, 07/07/2011 - 10:03 | 1432266 RobotTrader
RobotTrader's picture

So-called expert "Sugar High" El-Erian missed one of the greatest stock market rallies in world history.

GMCR, COH, BBBY, WYNN and many others making lifetime highs today.

After such a horrid prediction, why would anybody listen to this guy now?

Thu, 07/07/2011 - 10:13 | 1432291 WW
WW's picture

Right Robot!

El-E sold the New Normal theory of woe, while the markets took off!

Thu, 07/07/2011 - 10:38 | 1432374 HistorySquared
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“Because of a growing fear that the issuers of the major currencies – including the US, as the issuer of the world’s reserve currency – risk de facto debasing gradually their currencies. So some central banks are incrementally and gradually diversifying away from the dollar through purchases of gold.”


  • ECB has used liquidity solutions to solve a solvency problem.
  • The result is a contaminated ECB’s balance sheet.
  • Europe requires one of three solutions to avoid a disorderly outcome :


  1. fiscal union (common tax policies for example dictated by the center)
  2. debt restructuring
  3. a Euro-zone sabbatical for at least one (and possibly up to three) of the 17 members of the Euro-zone.


QE2 turned the Fed into a portfolio manager

Expect higher imported inflation due to dollar debasement and as emerging economies do not want or need the liquidity the paper the Fed is exporting


HistorySquared :

The accumulation of gold by central bank shows that the central bank oligarchy is being tested. The increasing lack of trust stems from devaluing currencies, massively overleveraged balance sheets, and large debt levels.

Banks stopped trusting each other during they 2008 crises, spiking interbank interest rates. This is the same trend happening at the sovereign level and likely to end in a crises of confidence between governments and their paper, resulting in currency crashes. 

The pollution of central bank balance sheets is an untold story and it’s worth pondering what would happen should central banks become insolvent themselves (likely massive money printing).

There will come a point where central banks will need positive real interest rates to stem a crises of confidence, and this will be the dagger in the price of gold. This appears far off and will likely require a series of currency crashes first.


Thu, 07/07/2011 - 10:38 | 1432375 Jovil
Jovil's picture

Well check where you stand in the Pyramid of Capital System. This poster hangs in the office of a prominent Nobel Prize winer in economics. How true this is.


Thu, 07/07/2011 - 11:51 | 1432744 PulauHantu29
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Dow is up over 900 points since June 23rd....???

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