#Mohamed El-Erian #FederalReserve #Bondmarket
Mohamed El-Erian, president of Queens’ college at Cambridge University and Allianz chief economic advisor, joins Yahoo Finance to discuss the latest Fed decisions, impacts from bond market moves, and inequality due to the pandemic.
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El, this is a much better outfit. Good one. Keep it up!
What if the bond yield is 20 pcent and still no one wants to buy it?
This host reminds me of jellybean Kushner !
The Fed has lost control, Inflation is worse than these idiots realize. Milk,Gas,Lumber,housing all keep going up, while average Americans wages stay stagnant. Some took pay cuts during Covid19 and still have not been moved back to their original pay.
Purely logical algorithms making purely logical moves, spooks the illogical humans into mirroring said algorithms. Cascading stock prices…panic, massive profit loss affecting both business and retail. The Fed, as always, there to scoop up all the assets, and let the cycle begin…again. But, maybe not this time…
This guy’s been getting it wrong for as long as i can remember.. he went on TV no less than 10 times in mid 2020 repeatedly telling everyone not to buy equities, right at the beginning of a 40% bull run. Now he says that even if the Fed loses control and yields spike, the economy will be unaffected. Fat hope. Yield spike could lead to panic, contagion and credit crunch. Trillions of bonds underwater. Good luck El.. you’re gonna need it!
He was saying buy companies with good balance sheet, stop with false narrative !
What if a giant Halloween UFO bat flew out the sky and scared the bejeebus out of the stock market and bonds? Hmm?
Shut up Boomer
His name is Muhahmmed I wouldn’t even trust him with religion let alone the stock market….
El Erian is the master at rambling on like a true economist with no actual use.
The Fed may lose control? Oh and thats a bad thing?????
Real return bonds are the only bonds to own right now.
Government bonds are not risk free assets. A 5 year TIP at -2% is a guarenteed loss of purchasing power.
Noticeably, he never mentioned spending the stimulus check on rent or food. It’s a very Alice in Wonderland world we are in.
It’s the creature of Jekyll island at the climatic peak
Agree.
Finally someone says the true reason for inequality
No. “Economic growth” is not “better”. We are so far past a reality in which “economic growth” is a good thing that it is sickening every time a so- called expert recites the same tired and corrupt mantra. We do not need more stuff. We do not need to consume more.
that is y Buffet bought VZ for dividend and very low PE of 13 as per finviz. = undervalued plus moat and dvies. today FAANG tank while VZ went up 1%.
lmao Warren doesn’t care about economics he literally said that in one of his interviews. This is hedge funds
😒😒😒So what the Fed did furthered inequality but it wasn’t by “choice”. Interesting. I wondered who could’ve seen this one coming.
What about the banks SLR? Without the exemption wouldn’t they have to buy a lot of bond?
Powell is not going to lose control of the bond markets. I think you’re on to something with the SLR, this is the ACE up his sleeve, another tool.
Inflation Target is expected to be Rampant and they know it to be the case. In fact Inflation will enter Venezuelan Level Event. 1Million Percent Inflation is very probable under such Debt Load.
People are dumping cash and they’re buying hard assets. 100 trillion fake dollars will be chasing a very very limited amount of gold silver bitcoin copper and others. Yields would rip and we have an insolvency event. Stagflation.
Permabear El-Erian.
The economy is about production and supply not aggregate demand. You really can’t grow an economy by using debt to increase Aggregate demand. Aggregate demand is easy to increase. It can happen overnight. Just print some money. Aggregate supply takes time to increase. The situation will be stagflation not a growing economy.
Peter de Luca: Economist
Your guest is adorable.
I blame all these trade algorithms. 90% of the market since the 80s have been computer automation trading through human made algorithms. Humans make errors. Why are they making software to trade and have a say what does what where and when.
Also Inflation is fear mongering by the banks. You gain more purchasing power as a borrow than the day before if inflation rising. The banks are the losers
House value increases. Etc etc
El Erian is a charlatan
…it is crazy to celebrate GDP growth based on FED money dumping… ridiculous…make money on the surge and dump when profit targets met…this is the biggest dumpster fire in US history…
TODAY IF YOU HAD $ IN THE STOCK MARKET CONSIDER IT LIT ON FIRE AND GONE. SORRY. ALL HOT SECTORS WERE BASICALLY WIPED OUT. I THINK THE POOR ARE THE NEW WELL OFF NOW. SAD BUT TRUE.
Thank You !!
That’s what I did. I invested my stimulus money in most volatile assets. I bought ammo with it
There’s always a wisk in anything we do
and risk too 👍
Inequality means set your alarm clock
Fed bigger problem will be upcoming deflation. Not inflation. Inflation is after the collapse of this 40 year bull market. He is too early like every one else tripping over Inflation. Inflation will show in the next decade not in 2021
Clueless! The economy is closely tied to the bond market, and without cheap rates a recovery will be negatively impacted.
No! The economy needs high interest rates. Enough with this short term corrections delusions.
Finally some stock correcting aka crash again to overpriced stock prices.
This guy knows nothing hes been bearish over the past year and hes been dead wrong
He’s not a trader or investor. Did you expect he’d call Tesla to $900 post split?
@bike bowling I didn’t say anything about Tesla im talking about the market in general. I personally would never invest in Tesla
equality = steal from successful hard working people and give it to lazy unsuccessful people
question> What does he mean by “the feds will loose control of the bond market”? To whom?
The “Fed”eral Reserve sets their short term lending rates, which allows them to manipulate all rates throughout the risk curve by domino effect. However they really can’t control the long end if the bond market disagrees with them.
@E D very interesting
6:55 more than 7% growth in GDP in the USA?! is this the dollar milkshake theory?
This man seems trustworthy..but talk is about buying stocks,bonds..control lack of control inflation…? R we creeping into a caste system…a few folk building mega yachts most folk r in life preservers or treading water and don’t forget the tents..
Inflation may be “temporary” but the price increases it bring are permanent. Be afraid, very afraid. The word “correction” means exactly what it says. I have no confidence anymore and with good reason.
Who is this bozo? Just do the opposite of what this scammer says- u will be good
El-Erian is the most honest out there. I like him.
What a total joker! Just yesterday he said the markets are living in the moment and the fed now control the markets….What a total joker
These pundits always say a whole lot of nothing, “this may happen, or this may happen” the end.
These pundits are totally useless, why can’t they predict the future with 100% accuracy!!!!
Ask yourself: are there some things in the universe too complex for anyone to know for sure? Do you think maybe the economy is one of those things? The economy is made up of billions of people, some more weighted than others, making decisions and reacting on the fly. So do you think maybe the economy is one of those things?
someone who claims to know exactly what the future holds is much more suspicious. if one can’t hold the idea that the world is not black and white and there is a whole lot of unpredictability that (e.g., virus, inflation, supply chain disruptions, geopolitics, natural disasters, etc.) at anytime can wipe out a long-held thesis, good luck in all you do…
he usually babbles quite a bit. But he’s straight to the point in this interview. Play the video from 6:33 to 6:54…..he’s pretty much telling u exactly what you should be doing.
Remember Zimbabué, Venezuela, Hungary?
“Why did they just kept adding 0’s to their bills think it would solve anything?”
“Could they think logically?”
Now look at the US (and Europe) today
Your comparing US and Europe to Zim? 🤔
So, there are many people who didn’t need the stimulus. They will go out and buy crap made from other countries, since little is made in the USA. Tell me how that helps the USA ?…
I think we achieved the greatest save in history people forget the level of predictions that could have played out.
The fact that they even talk about investing “stimulus” in itself shows that the press will keep printing. The best thing that can happen for the world is the dollar crashing so americans can be humbled. If you think the fed is being honest you’re being ridiculous. Rent, housing prices, food prices, fuel, energy, metals, building materials, etc, etc. All up exponentially……..but inflation is less than 2%! Wake up america, be responsible and take the fed needle out of your veins!
all by design
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But since then I haven’t even been able to make the fortune I had in mind.
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The market place is saying that inflation is transitory, therefore atm it is in line with the FED. If one looks at the term-structure of break even, you can see that the 10-Yr BEIR is lower than the 5-Year etc (i.e. an inverted curve). This is not usually the case, whereby the curve is typically upward sloping.
What are the chances that we have long-term inflation due to severe supply chain disruption?
End the FED.
This guy is selling Banker propaganda. 770,000 jobs lost last week but nothing to see here. What a crock of crap.
Inflation is transitory, like it was in Germany in 1923!🤣😂😅
At this point if you are not all killed it’s a crime against humanity technically. You were warned enough
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No such animal as temporary inflation. Real inflation is in excess of 10%.
Am I the only one that is sick and tired of hearing “Pent Up Demand” ? Are you going to watch 200 movies in one night? How many dinners can one eat at one setting? Pure Bullshit.
If I ever see another us military person in uniform again I’m going to run them over with my car. Anywhere.
Inequality what a fn joke! There will always be inequality….let’s play sports with no score …Olympics with no medals……no hierarchy in the work place …let’s let underqualified people win and lead our society…..Why do you think society is crumbling ?
Poor people think of what they can buy with their money, Rich people thinks of what they can invest in with their money 💰💰💰
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All these fancy words for price action fraud….
I wasted 5.43 minutes of my time watching this nonsense, i didn’t learn anything from three individuals who don’t understand economic.
They want, they beg for inflation, but they are more afraid for deflation, or worse stagflation.
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I am not sure if he is right when he says that the FED inadvertently made the rich richer… there is indeed the quantilion effect but nothing beats greed and selffishness… I am long ropes and lamp posts.
Because the Fed’s policy is always inflation, this is one cause of inequality. Because the US government has put a high price on college education so many young people are in debt and wages are low. This will cause a lost generation unless there is a significant change in policy by both the Fed and the US Treasury.
This is probably the highest liquidity level the U.S. economy will see for several years (barring any more rescue money being needed soon for a potential stock market crash or some other type of emergency). Fed market stimulus actions and government stimulus checks have our economy (and the sock market) awash in dollars. The M2 money supply rocketed upward and is totally bloated. Since inflation has been defined as “too many dollars chasing too few goods,” the next three years will be very, very interesting. It will be fascinating to see how all those funds get absorbed. Watch out when the 10 year U.S. Treasury yield hits 2%. That’s when the fireworks show will likely begin with the bond market.
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Why weekly unemployment still up if growth projected is 7%.
Do we whisk what?
This guy looks just like Vincent Price
Where should people invest their stimulus check? The Meek shall inherit the GameStop.
it happened then because that was when i used the fed’s tool.
When financial channels start turning every conversation back to “inequality” and “fairness” you know they’ve jumped the shark.
Think about the people that are getting stimulus checks. A lot of them should pay off debt or build an emergency fund.
Lumber prices have skyrocketed 140% over the last year. $7.00 for a standard 2″x4″x8′! Is this something different than inflation?
1400 hundred pays a months rent – big whoopee
-I feel like Bitcoin will give us freedom and more…-
*_This Comment Was Removed By The US Government and Jerome Powell_*
What bunch of B.S.
Dear Mohamed: I hope you paid close attention to the book on surveillance capitalism strategically placed behind you.
“The liquidity paradigm”…man this shill is part of the shell game with this semantics BS.
I’ll put it simply…this is a cantillon effect where those closest to and holding on the “liquidity” are scrambling to spend that “money” and extract its value before dumping valueless dollars on the public. “Money” is looking for a safe haven, either bonds, “surfing” frothy tops, basically a Ponzi scheme to extract the only value im the system and steal it before the masses demand it.
What makes this guy particularly bad is that he makes his living studying, commenting an ultimately supporting a system that is forbidden to his culture which he sold out long time ago. He is a shill that sold his soul to ride to the top of his own wave as he puts it.
Alternative to stock? Really? 🤣 Where are the bonds with +30% interest?
this guy has been singing this old story for 20 years…Chicken Little
He’s been wrong for a year now. CNBC won’t have him now? So Yahoo finance take him?
Appreciate the content. Appreciate the thoughts he expressed. That said, every time I see this guy or hear this guy, I get up, get a glass of water, and make sure there’s not too much salt in my water…
In other words, if this was said to the tune of Jeopardy:
WhAt Is yIeLd CuRvE CoNtRoL ?
Great
No way. The treasury continues to print bonds and the fed will continue to buy them. Doesn’t matter what the interest rates are, they’ll just print more money to buy more bonds. Buy Gold or Good backed crypto currency. AABB
Whisk free stocks!!!
This guy has such a poor track record. Why does the media keep courting him?
The inflation is not going to last so is deflation coming after ? Harry dent believes so
I laugh at how El Rian insinuates that we have “markets” and that the FED was ever trying to help things
Over 700,000 job loses every week for a year…& your telling me everything is fine. The real economy is in a full blown collapse unlike anything we have ever seen in history…buy real stuff & get out of debt…’inequality inadvertently caused by the fed’ what a stupid fucking statement it was obvious to anyone that printing currency out of thin air would make inequality worse this guy is supposed to be an Economist…I’m currently reading..The Deficit Myth..by Stephanie Kelton..the fact that this woman has a PHD in economics & has the ear of the Government is terrifying & proof positive that any qualification in economics is about as useful as a degree in gender studies.
The price of gold 🏅points to deflation.
Financial investment now should be in every wise individuals list
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