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El-Erian On Stocks: "Prices Are Artificially High - It’s Time to Take Profits"

Tyler Durden's picture





 

"It’s not going away, it’s going to get worse," is how PIMCO's Mohamed El-Erian warns Yahoo's Lauren Lyster about central bank policy and the currency wars that are so much in discussion currently. Central banks have been compelled to undertake unconventional measures, things they haven’t done before, because other policymakers are not stepping up to take responsibility on the fiscal side. These implicit devaluations and beggar-thy-neighbor policies force a lot of liquidity into the system and by pushing up asset prices, central banks believe, create a 'weath effect'. It can also trigger “animal spirits” – we get all excited and invest more.

The hitch, El-Erian says, is that in the process, central banks may “break” something. A currency war would fall into this camp. So it’s “high-risk, high-reward and no one can tell for sure which way it’s going to tip,” he says.

In terms of equity markets, El-Erian says investors are split into two camps.

  1. One camp believes that everything will go higher and central banks will succeed in their efforts.
  2. The other camp believes asset prices are going to come down to meet the fundamentals.

El-Erian puts himself in the second camp.

We think that prices are artificially high, that maintaining them here is going to be hard as central banks become less effective, and that it’s time to book some profits and to wait for some better entry points,” he explains.

He clarifies that this is not a “Lehman moment." But “prices that have gotten way ahead of what policy can deliver,"

 

Click image for full clip:

 


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Fri, 02/15/2013 - 18:50 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

No shit statement of the year.

Fri, 02/15/2013 - 18:51 | Link to Comment IridiumRebel
IridiumRebel's picture

+1

Fri, 02/15/2013 - 19:09 | Link to Comment TruthInSunshine
TruthInSunshine's picture

  "He clarifies that this is not a “Lehman moment.""

 

But the chances are good we'll have another "Lehman moment" sooner rather than later, even if no one now knows what it will look like with specificity, thanks to a larger notional aggregate bubble (affecting an even wider swath of asset classes than prior bubbles have) than we've seen in most of our lifetimes, thanks to absolutely radical, coordinated, central bank monetary fail-policies. 

When that moment arrives, they'll declare that "noone could've seen it coming," and then proceed to panic and throw reams of fiat/credit/debt at the wall to see what sticks in terms of attempting to sooth nerves and in pretending to take concrete steps towards stemming the "new, larger" crisis (that's actually merely an extension of the existing crisis born of the current monetary policy radicalism).

Fri, 02/15/2013 - 19:15 | Link to Comment King_of_simpletons
King_of_simpletons's picture

"Lehman Moment" is after the crash.

Fri, 02/15/2013 - 20:21 | Link to Comment The Alarmist
The Alarmist's picture

I see that the move to Yahoo did not do much for her pay situation ... same cheap, crappy outfits.  Lauren got much better exposure on RT, where you could actually find her stuff without having to look too hard.

Fri, 02/15/2013 - 20:41 | Link to Comment Killtruck
Killtruck's picture

I'd like to find her stuff...

Sat, 02/16/2013 - 11:04 | Link to Comment dark pools of soros
dark pools of soros's picture

I'd like to stuff her stuff

Fri, 02/15/2013 - 20:45 | Link to Comment Deo vindice
Deo vindice's picture

Some of the outfits she (barely) wore on RT certainly did give her a lot of of exposure.

Sat, 02/16/2013 - 00:04 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

She looks fantastic here. Frankly I prefer her dressed more conservatively. I'm so sick of seeing (not to mention hearing) the garden-variety news sluts. She's a class act, it's nice to see her dress like a class act too.

Sun, 02/17/2013 - 02:38 | Link to Comment NumNutt
NumNutt's picture

You're right she is a class act......that would look great in a thong bikini.....

Fri, 02/15/2013 - 20:46 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

"where you could actually find her stuff without having to look too hard."

If I found her stuff, IT would be hard...............

Fri, 02/15/2013 - 20:47 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Sell stocks.. & buy PIMCO bond funds!

YAY!!

Fri, 02/15/2013 - 19:15 | Link to Comment nope-1004
nope-1004's picture

So much for that "new normal".  I agree that "The other camp believes asset prices are going to come down to meet the fundamentals. El-Erian puts himself in the second camp".

But it is the CB response to the retracement that will send shockwaves throughout the currency land.

 

 

 

Fri, 02/15/2013 - 19:19 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yep.  If stocks dip below DJ 13k then I bet Bernanke begins buying $140B/mo of bonds.

Spiraling down the toilet bowl....

Fri, 02/15/2013 - 19:30 | Link to Comment derek_vineyard
derek_vineyard's picture

when the next lehman moments hits, in retrospect everyone will realize it was due

Fri, 02/15/2013 - 19:33 | Link to Comment King_of_simpletons
King_of_simpletons's picture

And CNBC will run an overnight marathon where Maria Bathroom will be screaming how this is all quiet unexpected and no one could have predicted the crash and the subsequent turmoil.

Fri, 02/15/2013 - 20:07 | Link to Comment knukles
knukles's picture

And poor Mandy Bigtits'll sit there crying, Steve Liesman'll be saying that everything's getting better when the bad numbers are excluded, the guest host, Paul Krugman will be screaming, I mean fucking screaming waving his hands all over, standing on the seat of his chair and still barley visible above the desktop, throwing Styrofoam cups (not banned in Inglewood) of cold coffee all over railing on about alien invasions and broken windows, Sorkin will sit staring at Mandy's bigtits while Kernan tries to get Santelli to tell everybody what happened and all Santelli'll say is I tolja so, tolja tolja tolja and nobody fucking listens to me you stupid bastards, I tolja, I fucking tolja.", so the producer has no option other than to cut to a dated rerun of "Amos and Andy", dedicated to the NAACP's birthday celebration held in Detroit's Cobo Hall in 1951, while everybody is yelling at the same time and nobody has any clue whatsofuckingever what is actually going on about them.

Fucking awesome I tell ya, awesome.

Fri, 02/15/2013 - 20:51 | Link to Comment kaiserhoff
kaiserhoff's picture

I'd comment, knuks, but I wouldn't know how to improve on that;)

Fri, 02/15/2013 - 21:25 | Link to Comment Yen Cross
Yen Cross's picture

 That was so fucking funny knuckles. I pissed myself laughing over that rant! :-D  +1

Fri, 02/15/2013 - 21:07 | Link to Comment klockwerks
klockwerks's picture

Now that was a great visual and would be great to see

Sat, 02/16/2013 - 11:10 | Link to Comment dark pools of soros
dark pools of soros's picture

....and then Cramer storms in with an inflatable bull

Sat, 02/16/2013 - 16:05 | Link to Comment easterner
easterner's picture

you guys are awesome. i could not stop laughing!!!

Fri, 02/15/2013 - 19:33 | Link to Comment Never One Roach
Never One Roach's picture

smells fishy

Fri, 02/15/2013 - 19:53 | Link to Comment Unprepared
Unprepared's picture

that's because the can that's being kicked is a tuna can.

Fri, 02/15/2013 - 21:50 | Link to Comment sunnyside
sunnyside's picture

That's Becky you smell, waiting for a delivery of "ketchup".

Fri, 02/15/2013 - 20:14 | Link to Comment Downtoolong
Downtoolong's picture

When that moment arrives, they'll declare that "noone could've seen it coming,"

They're already starting to cover their asses in the media. Krugman was on the tele the other day stating how he thought people were relying too much on the Central Banks to save the economy.  Gee Krug, do ya think? But, that never stopped him from rallying behind every reason the Fed could think of to print more money.

Of course, what Krugman was really saying is don't blame the Fed and the Banksters when the shit hits the fan, now that we all realize it definitely will because their policies have massively failed.

  

Sat, 02/16/2013 - 10:07 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

I would think the next "Lehman Moment" that "nobody could have seen coming" will indeed be Meredith Whitney's Tragedy of the Commons. Remember that? There are still countless pension and annuity funds that only survive based on impossible rates of return. That impacts munis in ways that Main Street cannot ignore. Many of them are already dead, but like Mike the Chicken, they walk around headless.

Sun, 02/17/2013 - 10:13 | Link to Comment Desert Rat
Desert Rat's picture

When the SHTF this time, what could possibly be done to clean it up? If $1T a year is the problem, what's the solution? Will any amount of "printing" "help"? It seems to me we are f'ed any way you look at it... but until then, BTFD...

Thu, 02/21/2013 - 23:49 | Link to Comment monkeyboy
monkeyboy's picture

"He clarifies that this is not a “Lehman moment.""

 

Yep just putting it out there. Wouldn't want any surprises now would we...

 

 

Fri, 02/15/2013 - 20:00 | Link to Comment jwoop66
jwoop66's picture

Yeah, but, more importantly, is LL no longer on Putins channel?   When did this happen?

Fri, 02/15/2013 - 19:00 | Link to Comment Shell Game
Shell Game's picture

I can almost hear the studio derived canned laughter after these 'pull string' talking points...

Fri, 02/15/2013 - 19:28 | Link to Comment kaiserhoff
kaiserhoff's picture

It's not easy to take investment advice seriously, when it comes from a Dude named Mohamed, with a lithp.

Then again, look at our arrogant POTUSPROMPTER.

Fri, 02/15/2013 - 20:19 | Link to Comment knukles
knukles's picture

OMAllah, Jihad on your ass for that one

Fri, 02/15/2013 - 20:38 | Link to Comment kaiserhoff
kaiserhoff's picture

Probably so, but the line forms the the right.

Fri, 02/15/2013 - 19:55 | Link to Comment Pareto
Pareto's picture

+1 and then on the next reel he argues that for growth in the economy there "has to be the right mix of government spending and tax".  He's talking out of his ass if he thinks some kind of tax and spend cocktail is going to generate growth since tax and spend of any kind has contributed to the shiticane were in now.  Just another fucking Keynesian with another dickhead thoughtcloud rolling off his tounge.

Fri, 02/15/2013 - 22:41 | Link to Comment disabledvet
disabledvet's picture

how about if he said "i'm not worried because i think the American armored divisions will be rolling into Cairo by year end...or my name isn't Mohammed." Would that change your point of view? (you can still call him another "asshole Keynsian" of course. only "with a turban.") http://www.youtube.com/watch?v=U8XrE0FSQv4

Sat, 02/16/2013 - 08:33 | Link to Comment Lost My Shorts
Lost My Shorts's picture

Come on guys, be real.  El-Erian only talks his (extremely large) book.  If he is talking down stocks, that means he wants to buy, and it's very bullish.  Don't hold your breath for any pullback. 

If El-Erian wanted to dump stocks, he would say they are undervalued.  Duh.

Fri, 02/15/2013 - 18:50 | Link to Comment IridiumRebel
IridiumRebel's picture

Dude is totally right.....when WMT is stating it has never been worse.....SELL. Consumers are not consuming. We gotta shit sandwich about to be fed to all.

Fri, 02/15/2013 - 19:25 | Link to Comment Rainman
Rainman's picture

The inattentive muppets are coughing up blood over their Xmas bills and Olameo gave em a 2% payroll shot in the ass as they were LEANING FORWARD !

Fri, 02/15/2013 - 18:53 | Link to Comment francis_sawyer
francis_sawyer's picture

LongSoupLine... Please indulge us with a comment on El-Erian...

~~~

I'll handle the Lauren Lyster stuff... [which is totally different]

Fri, 02/15/2013 - 19:46 | Link to Comment fuu
fuu's picture

Needs more pi-rats.

Fri, 02/15/2013 - 19:56 | Link to Comment Hulk
Hulk's picture

We seem to have lost slewie...

Fri, 02/15/2013 - 20:15 | Link to Comment kaiserhoff
kaiserhoff's picture

I haven't see Madhedgefundtrader either, or is that the Dude who is up for Secretary of Defense?

Fri, 02/15/2013 - 19:57 | Link to Comment francis_sawyer
francis_sawyer's picture

slewie... slewie... slewie...

Fri, 02/15/2013 - 21:19 | Link to Comment fuu
fuu's picture

I voted for him. He should reincarnate as Slewie the Vice-prez.

Fri, 02/15/2013 - 18:52 | Link to Comment CunnyFunt
CunnyFunt's picture

Lauren doesn't look as hot as she did at RT. No leg shots, WTF?

Fri, 02/15/2013 - 18:57 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

She's still a dirty bitch.

 

Fri, 02/15/2013 - 19:04 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Get laid.

Fri, 02/15/2013 - 19:09 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

I bet she has seen many a cock, ohh those lips.

Fri, 02/15/2013 - 20:05 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

Hey, why the down votes? How the hell did Lauren get where she is, get real FFS.

Fri, 02/15/2013 - 20:27 | Link to Comment CunnyFunt
CunnyFunt's picture

I didn't junk you, bro.

I'm sad that Lauren went all "family" on us. There's still Daniela Cambone of Kitco, though.

Sat, 02/16/2013 - 02:53 | Link to Comment francis_sawyer
francis_sawyer's picture

Cambrone?... She looks like Snoopy...

Fri, 02/15/2013 - 19:37 | Link to Comment Never One Roach
Never One Roach's picture

Get one of those Japanese Love Dolls, Wile-E...they'll do you good. May I recomend little Miko? She is cooperative and very attentive. Will sit there for hours listening to you with sweet eyes and not argue with every word you say...a perfect woman!

 

http://www.diginfo.tv/v/11-0075-f-en.php

 

 

Fri, 02/15/2013 - 20:05 | Link to Comment Hulk
Hulk's picture

6 to 7 grand for these things.

Wonder how much they would cost used ???

/not

Fri, 02/15/2013 - 20:22 | Link to Comment knukles
knukles's picture

Jesus people... That's some sick shit even by my almost nonexistant standards.
Keep it up

LOL

Fri, 02/15/2013 - 20:41 | Link to Comment kaiserhoff
kaiserhoff's picture

Ya'll are just a bunch of preverts.

Fri, 02/15/2013 - 22:35 | Link to Comment Blano
Blano's picture

Ain't it grand??

Sat, 02/16/2013 - 11:20 | Link to Comment dark pools of soros
dark pools of soros's picture

Is that how much to rent them?

Fri, 02/15/2013 - 22:34 | Link to Comment Blano
Blano's picture

Jesus Jenny Hulk I can't stop laughing.

Sat, 02/16/2013 - 04:36 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Dunno...ask Hillary...

Fri, 02/15/2013 - 20:19 | Link to Comment kaiserhoff
kaiserhoff's picture

But does she say - Oh, Oh, you so beeeg GI?

Fri, 02/15/2013 - 20:50 | Link to Comment knukles
knukles's picture

"The doll is 157 cm tall and weighs 25 kg, which is about 10 kg lighter than the silicone doll developed by Orient in 2001. This improvement makes it easier to handle for seniors and people with physical disabilities."

Emotional disablilties, maybe?

Sat, 02/16/2013 - 04:16 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Emotional disablilties, maybe?

I resemble that remark. ;0>

Sat, 02/16/2013 - 05:46 | Link to Comment StychoKiller
StychoKiller's picture

While we're on the subject...

http://www.realdoll.com/cgi-bin/snav.rd

Fri, 02/15/2013 - 20:10 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

Ehhh not so much, she's actually really nice. She worked in the same building as me when she was at RT. Real friendly and personable. Always had her make-up done in studio. She was still hot, even without the make-up on in the mornings.

Thanks to her show I met Jim Rogers, Nigel Farage and Jim Rickards. Rogers didn't know what the fuck to make of me when I said hi to him in the elevator and asked about gold. With his southern accent he said "young man, I don't know. I'm sure it will go up". Farange was lighting up cigs the second he got outside. Rickards was the coolest of all three. He talked to me for about 5 minutes. Granted I told him his book was fucking awesome.

Fri, 02/15/2013 - 20:47 | Link to Comment kaiserhoff
kaiserhoff's picture

Weird isn't it.  If you are in the right place at the right time, you meet lots of people who are, for better and worse, celebrities. 

Most are pretty decent, but as a friend once said of a famous author, you wouldn't trust him to walk your dog.

Fri, 02/15/2013 - 20:53 | Link to Comment knukles
knukles's picture

A guy I worked with knew Bill Clinton during his governeor days.  Said he was one hell of a great guy with whom to play golf, cards and the like but he "wouldn't trust him alone in a dark room with just his bowling ball."

Fri, 02/15/2013 - 20:57 | Link to Comment nmewn
nmewn's picture

It'd still be fun watchin Clinton trying to fuck a bowling ball.

Sat, 02/16/2013 - 04:20 | Link to Comment A Nanny Moose
A Nanny Moose's picture

Don't talk about Hillary like that

Fri, 02/15/2013 - 21:44 | Link to Comment TuesdayBen
TuesdayBen's picture

I shook Billyboy's hand at a restaurant here in DC known as Sequoia, circa 1994.  Brushed Hillary's arm as I did so, between secret service agents.  Billy was staring at the nice rack on the young woman next to me.  Also sat next to Monica Lewinsky on a plane from  NY to DC around the time she was boinking Billy.  She was returning from the Vineyard, where Clinton was vacationing, I was returning from Nantucket.  She was digging me, I think, but too chubby for me.  Then a year later, she's in the news 24/7.  Billy was also at the Schiff/Gore wedding, as was a buddy of mine, who told me that Billy couldn't take his eyes my buddy's girlfriend's rack.  I have a few other anecdotes about Billy - he truly has a problem around the ladies.

Sat, 02/16/2013 - 04:33 | Link to Comment Clowns on Acid
Clowns on Acid's picture

What color dress was she wearing ?

Sat, 02/16/2013 - 11:26 | Link to Comment dark pools of soros
dark pools of soros's picture

So you had a brush with death... How cold was it?

Fri, 02/15/2013 - 23:17 | Link to Comment Mine Is Bigger
Mine Is Bigger's picture

...

Sat, 02/16/2013 - 05:49 | Link to Comment StychoKiller
StychoKiller's picture

The Truth has left you speechless! :>D

Fri, 02/15/2013 - 21:29 | Link to Comment DavidC
DavidC's picture

Nice anecdote Charles.

DavidC

Sat, 02/16/2013 - 04:31 | Link to Comment Clowns on Acid
Clowns on Acid's picture

What are you ..the elevator man in the bldg?

 

Fri, 02/15/2013 - 19:07 | Link to Comment Agent P
Agent P's picture

What's your opinion on bond prices there, Mohamed? 

BTW, When did PIMCO take over the world?  Gotta love that map behind him.

Fri, 02/15/2013 - 18:55 | Link to Comment writingsonthewall
writingsonthewall's picture

Off topic alert! - but I gotta get this out.

 

If you look back over my comments - I predicted this about a month ago - the REAL fallout of the EU meat crisis.

 

http://www.standard.co.uk/news/uk/horse-meat-scandal-beef-prices-start-t...

 

10% on the price of beef IN A WEEK - and they just found it in school dinners - and they're pulling it all.

 

Now what do they say about 'shocks' and 'hyperinflation' and 'triggers'?

Sat, 02/16/2013 - 11:27 | Link to Comment dark pools of soros
dark pools of soros's picture

Go veggie already and clam up

Sat, 02/16/2013 - 12:20 | Link to Comment csmith
csmith's picture

Have you ever thought about going vegan, Carl?

Fri, 02/15/2013 - 18:58 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

Yeah the biggest pump and dump Ponzi in history. Everyone is playing chicken hoping they will have the balls to get out at the top, I hope the fuckers lose everything.

BTW Lauren can sit on my face any time she likes.

Fri, 02/15/2013 - 18:59 | Link to Comment derek_vineyard
derek_vineyard's picture

Wile-E     seems you weren't around when the Naz went through 5000  or the nekkei went thru 38000

Fri, 02/15/2013 - 19:06 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

No I'm only three years old, but I learnt to read last week. I come on here for light entertainment. My speciality is directing Meteorites towards Russia at he bequest of the NSA who are the bitches of the CIA.

Fri, 02/15/2013 - 21:48 | Link to Comment TuesdayBen
TuesdayBen's picture

Where does one find the heavy entertainment?

Sat, 02/16/2013 - 00:49 | Link to Comment SheHunter
SheHunter's picture

Me thinks a few of you guys on here tonight need el-laid-o baddo. 

Fri, 02/15/2013 - 18:58 | Link to Comment Duke Dog
Duke Dog's picture

If Obama had a brother, he would look just like that POS - I can't stand him, but I had to watch the first 35 seconds to see my sweetheart:)

Fri, 02/15/2013 - 19:02 | Link to Comment Seasmoke
Seasmoke's picture

Mr. El-Obvious.

Fri, 02/15/2013 - 19:04 | Link to Comment Dasa Slooofoot
Dasa Slooofoot's picture

Currency wars?  

 

Fredo Krugman was on Bloomberg saying there is no currency wars.  That it is just monetary policy.  And he's not stupid like everyone says, he's smaaaaaht.  :D

Fri, 02/15/2013 - 20:24 | Link to Comment knukles
knukles's picture

Please do not ever talk of that man in a serious tone.

Fri, 02/15/2013 - 21:32 | Link to Comment Fredo Corleone
Fredo Corleone's picture

"Fredo Krugman."

Slooofoot, you broke my heart.

Fri, 02/15/2013 - 19:05 | Link to Comment Temporalist
Temporalist's picture

Every time El-Erian says a "P" word like "prices" or "policy" I blink and expect to wipe spittle off my face.

 

Oh and the Green Wizard of Fiat, Alan Greenspan, was on CNBS and he sounds quite dour on...everything.  They discuss Sequestration and the Wealth Effect (starts at 1:45):

Greenspan: Odds of Sequestration Occurring Are Very High

 

Fri, 02/15/2013 - 19:11 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And Congress is on a 9 day recess.  Pelosi said people shouldn't leave and I bet she boarded a plane for CA as soon as she stepped away from the mic.

Fri, 02/15/2013 - 19:13 | Link to Comment Temporalist
Temporalist's picture

Pelosi needs another facial overhaul.  It looks like shes been sleeping with a bag of hungry rats over her head.

Fri, 02/15/2013 - 19:15 | Link to Comment Shell Game
Shell Game's picture

She makes The Joker look saggy faced.

Fri, 02/15/2013 - 19:16 | Link to Comment Temporalist
Temporalist's picture

She went as The Joker for Halloween and people complimented her on what she had done.

Fri, 02/15/2013 - 19:15 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Heh, yeah, I wasn't sure if it was Greenspan or Pelosi whom Maria was interviewing.

Fri, 02/15/2013 - 19:43 | Link to Comment francis_sawyer
francis_sawyer's picture

r u sure it wasn't the other way around?

Fri, 02/15/2013 - 19:29 | Link to Comment Meatballs
Meatballs's picture

Fuck you Greenspan! Fucking die you douche nozzle. "Dr. Greenpsan" MY FUCKING ASS. When has he ever "thought anything through?"

Fri, 02/15/2013 - 20:28 | Link to Comment chindit13
chindit13's picture

I don't believe English was his first language, and there is no "p" in Arabic.  Most English speakers will never correctly pronounce "Baghdad" or the name "Ghazi".  Even "Mohammed".  Same thing.

Smart and articulate guy, this fellow.

Fri, 02/15/2013 - 21:03 | Link to Comment nmewn
nmewn's picture

"and there is no "p" in Arabic."

I'm almost afraid to ask...no, I won't ask ;-)

Fri, 02/15/2013 - 21:56 | Link to Comment sunnyside
sunnyside's picture

you must, you must......

Sat, 02/16/2013 - 05:53 | Link to Comment StychoKiller
StychoKiller's picture

[quote] Smart and articulate guy, this fellow. [/quote]

Makes ya wonder, "Does he stack Au/Ag?"

Sat, 02/16/2013 - 03:30 | Link to Comment AbbeBrel
AbbeBrel's picture

Great interview with the former Chair-Satan - what a slippery devil!   At one time he says that "Volker never talked about policy, so I don't wanna either" then a minute later he is talking about Bowles-Simpson/Simpson-Bowles (probably the BS version is more appropriate!).   I especially like how at the end of the interview he talks about "unless we get enough confidence going back for longer-term investment" - we won't get 3% or higher GDP growth.   Note that he cagily doesn't mention housing at all!   My take is that he is referring to the need to blow another housing bubble, without saying it.

Fri, 02/15/2013 - 19:06 | Link to Comment hairball48
hairball48's picture

Damn! Lauren looks like she's about to give me a hug and a kiss in that link. ...but then, probably not :)

Fri, 02/15/2013 - 19:11 | Link to Comment ebworthen
ebworthen's picture

So maybe there's been some profit taking in Gold ETF's so they can buy the coming correction in equities?

Those hedgies and algo's have been having a field day playing sector rotation and churn.

Fri, 02/15/2013 - 20:31 | Link to Comment knukles
knukles's picture

What fucking correction in equities?  Said on the ticker today that some big bank was laying off 350 people in stock trading business because of bad market environment.
WHATTHEFUCK?

When Mohammed talks about Prophets I keep glancing outside to make sure no bearded dudes with scimitars on horses in my yard.

Now I ask you, who the fuck made me paranoid about these foreigners, nonbelievers, swarthy skinned people in robes and funny vests, eh?  Not anybody here?  No fucking way.  Sir, may I please move to the front of the line for my colonoscopy, I'm running late for my connection.

Fri, 02/15/2013 - 20:32 | Link to Comment ebworthen
ebworthen's picture

Yes, where is the correction?

But, if GS knew the Heinz deal was coming and have made their money, perhaps it is actually going to happen?

Dunno, way overdue, but there is definitely some sector rotation and shenanigans going on with what is left of a market.

Fri, 02/15/2013 - 21:01 | Link to Comment knukles
knukles's picture

Abstatively.
2 indica from my feeble point of view.

1.  They're working the price of gold in nasty hard assed ways like we've not seen before.  The question is why this time, so hard, so far all of a sudden.  Seems like the paper short sellers believe maybe somethings about to break that'll push it higher?  Reminds me of the old Greenspan comment after I think it was th Plaza Accord when he said that "in retrospect they should have intervened."

2.  Of the real smart money, the private equity and so on guys who do seem to know WTF is going on, are ardent sellers of their positions over the last several weeks with late pricings, follow-ons, after the close activities, etc.  Kinda similar in tone and feel to the PM suppression. 

Why? All of a sudden.... 

As I have to keep reminding some of my friends, there are no fucking coincidences.

Fri, 02/15/2013 - 19:09 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Fundamentals? What are you talking about, Mohamed? Rules do not apply anymore, the Krugman said it today on the Telewebs again. I would only sell if Faber said buy.

Fri, 02/15/2013 - 19:13 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Faber, Junjah, Rosie, Bidermon - they have all been very wrong lately. 

 

Fri, 02/15/2013 - 20:33 | Link to Comment ebworthen
ebworthen's picture

Marc or David?

Fri, 02/15/2013 - 19:12 | Link to Comment urbanelf
urbanelf's picture

She raises my interest rate.

Fri, 02/15/2013 - 19:14 | Link to Comment dojufitz
dojufitz's picture

I keep getting 'Date an Older Woman' ads popping up on ZH.......and i dont wanna!

Fri, 02/15/2013 - 19:31 | Link to Comment Rainman
Rainman's picture

What's the problemo..?? They don't swell, they don't tell and they're grateful as hell.

Fri, 02/15/2013 - 19:35 | Link to Comment kaiserhoff
kaiserhoff's picture

That's what Ben Franklin said, more or less..., but then he was damn near blind.

Fri, 02/15/2013 - 20:01 | Link to Comment Pareto
Pareto's picture

+1000!  baaahaaaaaaaa!

Fri, 02/15/2013 - 20:21 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Ha, you watched too much granny porn. I only get ads for meeting catholic woman to marry.

Fri, 02/15/2013 - 20:33 | Link to Comment knukles
knukles's picture

Ah hah!  Another nun porn aficionado...

Fri, 02/15/2013 - 21:00 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Not even Hillary?

Fri, 02/15/2013 - 19:15 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

As all the Muppets get corralled for the sluaghter.

Fri, 02/15/2013 - 19:17 | Link to Comment rsnoble
rsnoble's picture

Yep some wealth effect.  Destroy the entire world economy to benefit 5 people.

Fri, 02/15/2013 - 19:20 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's like the Highlander decided fighting with swords was boring.

Fri, 02/15/2013 - 19:27 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

There can only be one.

Fri, 02/15/2013 - 19:42 | Link to Comment koncaswatch
koncaswatch's picture

+1 This reminds me of Dave Gruisin

Fri, 02/15/2013 - 19:26 | Link to Comment schadenfreude
schadenfreude's picture

I want equity prices lower, because I am stuck with my bonds. Please, give me some better equity prices, I have missed the run.

 

Stop whining you stupid fuck.

Fri, 02/15/2013 - 19:28 | Link to Comment eduard khil
eduard khil's picture

100 rounds, a silver eagle, and a 6er of beer set me back almost a hundo. Please, someone tell me there's no inflation again...

Fri, 02/15/2013 - 21:07 | Link to Comment steveo77
steveo77's picture

60" flat screen cheaper now LOL

Fri, 02/15/2013 - 21:07 | Link to Comment steveo77
steveo77's picture

60" flat screen cheaper now LOL

Fri, 02/15/2013 - 19:58 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Just goes to show...  I always thought El-Erian was a Middle Eastern Airline....

Fri, 02/15/2013 - 19:31 | Link to Comment q99x2
q99x2's picture

Just fire the nukes and get it over with. Asteroids aren't worth a damn at ending this.

Fri, 02/15/2013 - 19:32 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

Lauren should present topless (after the boob job).

Fri, 02/15/2013 - 20:34 | Link to Comment knukles
knukles's picture

What, she interviewed Krugman, too?

Fri, 02/15/2013 - 19:37 | Link to Comment busted by the b...
busted by the bailout's picture

El Erian is one of the few worth listening to these days.

I think he summarizes things very well here, but the wild card is the possibility of a return to recession (negative GDP and job losses).  And that possibility is not addressed here in his bifurcated view.

A return to negative GDP and job losses appears to be increasing in likelihood, in my estimation.  And obviously that would be a much worse outcome for equities. 

 He seems to expect a slow decline in equities to “meet fundamentals”, but recession would cause a much faster and greater decline, imo.

Fri, 02/15/2013 - 21:02 | Link to Comment knukles
knukles's picture

WAIT THE FUCK A MINUTE.

Job losses.  Like there have been no job losses?  The number of Americans at work is falling, at full time jobs, falling, at any job with any bennies, falling, unless statistically adjusted all to hell and back to show that there's at least some modest make believe job growth between here now and infinity

Jesus H Fucking Christ, do not let them subsume you!

There has been no fucking recovery!

Fri, 02/15/2013 - 19:41 | Link to Comment kill switch
kill switch's picture

The fog of chatter about Federal Reserve money-printing shenanigans, currency wars, fiscal intransigence, exchange rates, and alphabetized rescue operations conceals the central reality of the historical moment: that all industrial economies now face epic contraction, even rip-roaring China in its absurd and spectacular bid to become the latest drive-in utopia. The so-called advanced nations of the world are all sliding toward something less than they wish to be, and the so-called developing nations will backslide further into poverty and anarchy where development will never happen.

     The implacable contraction underway is the simple result of growing scarcity of cheap oil, the master resource. Thus, in a world where fantasy has replaced analysis, the propaganda channels brim with false news of America's coming "energy independence" and the rebirth of domestic manufacturing, the coming electric car fleet, and space tourism. There is also chatter among the paranoid that an imagined elite has deliberately engineered American collapse for fun and profit, with sideshows about the Department of Homeland Security promoting social upheaval in order to make a show of putting it down. This is all bullshit concealing the futile machinations of people so unfortunate as to hold political office in an unraveling they can't control. Where control is no longer possible, paranoid fantasies fill the vacuum of wishing for control.      One thing you can be sure of: the current sociopolitical weather will change. A front will blow through and sweep the fog away. So many circles of hazard are spinning around events that some fast-turning object will come off its axis and start smashing all the fantasies. When that happens, it will be every community for itself, and where there are no real communities -- for instance, the vast matrix of suburban noplaces that America emergently composed itself out of in a tragic quest to become its own televised fantasy -- we'll discover the dark side of the "liberty" that so-called conservatives endlessly invoke, in all its screaming eagle iconography.     Not since the Civil War (1861 - 65) has anything bad of this scale happened within the United States itself and the public is unprepared despite our total immersion in the on-screen ersatz heroics of avatars such as Dwayne Johnson. The terrible convulsion of the 1860s was preceded by a political time much like ours is now, with figures (calling them leaders is inaccurate) of no conviction backpedaling furiously toward strife.      Remember these things if you tune in to watch President Obama move his lips on Tuesday amid the incessant applause in the House chamber. He'll speak the words "climate change" and the hall will rock with thunderous handclapping -- but it won't mean anything because both the president and the people have no intention of changing the way we live. Mr. Obama will cheerlead for economic growth and he will be talking out of his ass. It's the nature of this contraction that economic growth is absent. You can have plenty of economic activity -- especially if you re-form (literally) the systems we depend on, such as farming, commerce, medicine, and transportation -- but it won't be expressed favorably in the GDP stats or the balance sheets of CitiGroup and Morgan Stanley.      At the core of this contraction is the disappearing act of real capital -- that is, accumulated wealth -- for the excellent reason that we are squandering what remains of it in the futile effort to keep living the way we do. But it will be vanishing fast, contrary to the view of such fantasists as David Leonhardt, Washington bureau chief of The New York Times -- catch him on the current Slate Political Gabfest -- who thinks that the Growth Fairy is about to land on the south lawn of the White House.      The State of the Union Address is happening in a peculiar quiet moment when all the financial brushfires of the time have been reduced temporarily to a smolder that conceals the full involvement of the roots under the surface. Our economic system is burning down. Nobody wants to talk about the system that will have to replace it, which I call a world made by hand.      The fortunate few will be those who have already established themselves in an authentic community of helping hands, who have some tools -- and I don't mean Adobe Photoshop or the latest iPhone app -- and laid in some bits of silver and gold. 
Fri, 02/15/2013 - 20:09 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Ever heard of a "paragraph"?

Fri, 02/15/2013 - 21:03 | Link to Comment knukles
knukles's picture

Oh, he seems like such a nice boy.

Fri, 02/15/2013 - 20:40 | Link to Comment Wile-E-Coyote
Wile-E-Coyote's picture

Hey, you just met psychopath, don't look him in the eye and edge very, very slowly towards the door! What ever you do don't mention his mother.

Sat, 02/16/2013 - 19:47 | Link to Comment kill switch
kill switch's picture

paragraph"?

 

it's a pity that you can't read without a paragrafffffffffffff

Sat, 02/16/2013 - 04:12 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Write your own article. This is the Comment section, dbag.

Fri, 02/15/2013 - 19:46 | Link to Comment Lmo Mutton
Lmo Mutton's picture

I like turtles.

Fri, 02/15/2013 - 20:56 | Link to Comment Hulk
Hulk's picture

Its turtles all the way down. Now get the fuck out of here...

Fri, 02/15/2013 - 21:01 | Link to Comment steveo77
steveo77's picture

Perfect reply!

Fri, 02/15/2013 - 19:52 | Link to Comment Atomizer
Atomizer's picture

Let's just create another Government stimulus program. Watch small growth prevail. Have Moody's downgrade US securities. Thus creating another injection to spar growth. This is becoming a scene from groundhog day movie. 

http://www.youtube.com/watch?v=tSVeDx9fk60

Fri, 02/15/2013 - 19:55 | Link to Comment pitz
pitz's picture

This guy is a tool, shilling for his line of bond funds mostly held by and for elites, that fund governments' largesse.  At the end of the day, what would you rather hold, paper issued by the government that produces nothing, or paper issued by a corporation that actually generates economic activity and presumably profits?

 

Fri, 02/15/2013 - 20:40 | Link to Comment knukles
knukles's picture

I wanna hold something that pays me more than .000056%

Fri, 02/15/2013 - 21:34 | Link to Comment Hulk
Hulk's picture

That being the case, you can now let go of your dick...

Fri, 02/15/2013 - 19:56 | Link to Comment BullyBearish
BullyBearish's picture

"We've seen this movie before"...yeah, like the last three years in a row they've tried to pump up the first quarter only to FAIL.  Coordinated or not, low-volume melt up or not, the typical consumer is NOT benefitting from this "wealth effect" and I don't know about your neck of the woods, but here in San Diego the lowest price regular I can find is $4.13/gallon.  Let me see, higher taxes, higher gas prices, higher food/electricity/water/insurance/everything prices.  When can I turn my house into an ATM again...I really need the money so I can CONSUME!!!!

Fri, 02/15/2013 - 20:10 | Link to Comment Atomizer
Atomizer's picture

Under the thought of statism, you should have gotten back into debt to buy a Chevy Spark vehicle to help contribute to the reduction of climate carbon emissions 

/sarc

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