El-Erian : Europe America and Japan are all debasing their currencies

Mohamed El-Erian PIMCO CEO/co-CIO. :at least one and probably three of the PIIGS are definitely going to restructure....we are in a world in which the G3 , US Europe and Japan are debasing their currencies and when the world sees that it goes into commodities , If you can align micro and maco uncertainty, you can unleash an incredible rally in the markets,




Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

El-Erian : Default is off the table

Mohamed El-Erian PIMCO CEO/co-CIO. :" I think unlike what he said on banks and on Europe he didn't add much on the debt ceiling issue. it's important to reiterate that default is off the table. it's not enough to just say that. this is a market that's facing a lot of uncertainties both domestically and globally. there is underlying deleveraging tendencies. we need a more proactive approach at this point. we need a vision as to how it is that we can both avoid default and avoid a downgrade. that didn't happen today. that's why the market reaction has been, well, he didn't really say much"

Mohamed El-Erian : we have to take Moody warning seriously

Mohamed El-Erian : "so importantly now two distinct warnings. not one but two. the first warning is if we don't get our act together in time we will be downgraded. the second warning is even if we get our act together ahead of the debt ceiling but it doesn't involve meaningful fiscal consolidation, then we will stay on negative outlook and that second warning is a really important one and speaks to something more general. I've always hated this word transitory. because transitory comforts you into complacency. we heard japan was transitory. guess what four months later we're feeling the impact. we heard oil at 100 is transitory. we're still. we heard unemployment at 9% is transitory and we're still. this debt issue will not go away quickly enough and we have to take this warning seriously."




Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Mohamed El-Erian : Italy less worrisome than Greece

Mohamed El-Erian speaking to CNBC about the Italian debt situation and the European Debt in general , Weighing in on the markets and the crisis in Europe, with Mohamed El-Erian, Pimco co-CEO/CIO, who says there are still problems that have not been resolved yet.Europe is viewed as unable to deal with the debt El-Erian says , Italy is very different from Greece and Portugal it is less worrisome than Greece Ireland or Portugal , but this is about people worried about Europe's ability to deal with its debt , Italy debt is mostly owned by domestic banks , we may not get a fundamental contagion but we can get a technical contagion

Mohamed El-Erian : QE3 would be a very bad idea

Mohamed el Erian , PIMCO's CEO on CNBC this morning 14 Apr 2011 he speaks about the debt crisis in Europe and gives an idea about his Market Analysis "The ECB is writing a check every single day" he said , and regarding the situation in America he said that "QE3 would be a very bad idea."





Mohamed el Erian, : ...."...Europe's debt crisis is not going away. why isn't it going away? very simple. you do not solve a debt crisis by piling new debt on top of old debt. ... so our view for what it's worth is that portugal, spain, portugal Ireland and Greece will restructure their debt. the market is pricing that in. today again greece interest rates are at record high. we think spain will avoid this. we think there's a line that's being formed between these three countries and the rest. but the market is going to test that line over and over again."

" what's hapening is that people are realizing that an advanced economy can have a debt issue. you had s&p come out yesterday saying there may be a haircut for countries like greece. you have the greek finance minister in the financial times today saying i don't think the country can come back to the markets "
"they did but as you pointed out earlier they took action so they have been recapitalizing the banking system they've been trying to fix the Cajas which are the saving banks. so they've been taking steps that slows the process down. importantly, don't forget there's someone to write checks. in lehman's case there wasn't somebody to write a check here there is Germany and there is the ECB . the ecb is writing a check every single day." " there are repercussions for Germany. there are absolutely repercussions for Germany " " they can handle it. the main worry is not germany as much as the ecb. you have a central bank just like the fed which is increasing its balance sheet taking on someone else's liabilities. that is a real issue because central banks should not be in the business of taking other people's liabilities. they should be in the business of monetary policy."

Mohamed El Erian on The Global Economy

PIMCO CEO Mohamed El Erian on The Global Economy


Mohamed El-Erian : "the impact for Japan is firstly a destruction of wealth there has been a lot of physical damage a tremendous amount of human suffering so once and for all destruction of wealth secondly once and for all decline in economic activity so the heading hat the economists call the wealth effect and an income effect "..." going forward you gonna see different things , first you will see a massive reconstruction program to give you a sense Kobe 1995 was 2 per cent of GDP reconstruction people estimate this will be two to three times as large " " so you gonna see a pick up in economic activity driven by reconstruction , second the private sector is not going to go back to where it was before and that's because of the nuclear element , electricity generation is going to be less going forwards may be as much as 25% less.......".... I doubt there will be a QE3 I am not saying it's impossible but I doubt there will be a QE3 , the economic argument for Qe3 is weaker the US is slowly healing , secondly the political argument has to be taken into account society is nervous when an unelected body starts acting as a fiscal agency and that what QE2 is so there is a limit to how often you can do it and thirdly Chairman Bernanke was very clear in his august statement in Jackson Hall which really was the introduction to QE2 he said there are benefits costs an risks in PIMCO's language we say well collateral damage unintended consequences ...
AS WE DO WE DISCLOSE OUR HOLDINGS EVERY MONTH AND SOMEONE found out that our holdings of US treasuries has gone on to ZERO , now why , everything you buy and hold must have value is that simple must have value , it must perform a role in your portfolio nobody has a monopoly over a position in your portfolio it has to have value and our estimation at the time is that there was better value elsewhere ......"

Mohamed El-Erian : QE3 not likely QE2 was a bad idea

Pimco CEO Mohamed El-Erian :.... I doubt there will be a QE3 I am not saying it's impossible but I doubt there will be a QE3 , the economic argument for Qe3 is weaker the US is slowly healing , secondly the political argument has to be taken into account society is nervous when an unelected body starts acting as a fiscal agency and that what QE2 is so there is a limit to how often you can do it and thirdly Chairman Bernanke was very clear in his august statement in Jackson Hall which really was the introduction to QE2 he said there are benefits costs an risks in PINCO's language we say well collateral damage unintended consequences ...





.Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendry investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Mohamed El-Erian on Pimco the decision to dump U.S. treasuries

Pimco CEO Mohamed El-Erian explains why they at Pimco have decided to dump all US treasuries



Pimco CEO Mohamed El-Erian : ..AS WE DO WE DISCLOSE OUR HOLDINGS EVERY MONTH AND SOMEONE found out that our holdings of US treasuries has gone on to ZERO , now why , everything you buy and hold must have value is that simple must have value , it must perform a role in your portfolio nobody has a monopoly over a position in your portfolio it has to have value and our estimation at the time is that there was better value elsewhere ......"

Mohamed El-Erian Managing Multi-Speed Markets

Jan. 14 2011 | A 2011 market outlook, with Mohamed El-Erian, Pimco CEO/co-CIO.

Mohamed El-Erian, on QE2

PIMCO's View of QE2

Nov. 18 2010 | Discussing whether investors overreacted in trying to prepare for QE2, with Mohamed El-Erian, PIMCO CEO & Co-CIO.

Greece likely to default by 2013, says Mohamed El-Erian

INTERNATIONAL. Greece is likely to default over the next three years because budget-cutting won’t be enough to reduce the nation’s debt burden, Pacific Investment Management Co .(PIMCO) Chief Executive Officer Mohamed A. El-Erian said.

It’s in Greece’s interest to default “as long as you can contain the contagion to other countries and it is done through orderly restructuring and repricing to retain competitiveness,” El-Erian said at a conference sponsored by the Economist magazine in New York yesterday. Like Latin America’s “lost decade” in the 1980s, “the alternative doesn’t promise growth and employment generation,” he said.

read full article >>>>

Mohamed El-Erian, Federal Reserve Terrified of Deflation

Tues. Oct. 26 2010 |Discussing Pimco CEO El-Erian's comments on TIPS and whether inflation is coming, with Bill Strazzullo, of Bell Curve Trading and Rob Morgan, Falkland Securities.
"QE is meant to drive down the price of safe assets so much that we are all pushed into doing something risky," El-Erian said in an interview Monday at a gathering of the Financial Women’s Association of New York.
"...I think it is an indication that the unthinkable and the un-probable at least what used to be unthinkable and what used to be un-probable is not only possible but it's a reality...." El-Erian told CNBC yesterday

Mohamed El-Erian : The Economy Needs Structural Solutions

Sept. 10 (Bloomberg) -- Mohamed El-Erian, chief executive officer and co-chief investment officer at Pacific Investment Management Co., discusses the Obama administration's efforts to spur U.S. economic growth and the outlook for Treasuries. El-Erian talks with Tom Keene and Ken Prewitt on Bloomberg Radio's "Bloomberg Surveillance." (Source: Bloomberg)

Mohamed El-Erian Pimco CEO : Investors should prepare for major structural changes

"Structural problems need structural solutions" “Forget about being hostage to mindsets that are very cyclical and look broader, because there are some major structural changes -- there’s some major realignment both at the national level and at the global level,” Mohamed El-Erian Told Bloomberg in a radio interview on Aug. 13, 2010 “We should not over-depend on the Fed,” he added. “The Fed does not have enough instruments for what we’re looking at. You need other agencies to get involved. We’re not getting any structural solutions.”
Pimco's El-Erian Discusses Deflation, Fed, U.S. Economy: Video

Aug. 13 (Bloomberg) -- Mohammed El-Erian, chief executive officer and co-chief investment officer at Pacific Investment Management Co., discusses Federal Reserve monetary policy. El-Erian, speaking with Tom Keene and Ken Prewitt on Bloomberg Radio's "Bloomberg Surveillance," also discusses deflation and the outlook for the U.S. economy. (This report is an excerpt of the full interview. Source: Bloomberg)