Mohamed El-Erian
Mohamed El-Erian
Mohamed A. El-Erianis an Egyptian American businessman, chief economic adviser at Allianz, a multinational financial services company. He is the former CEO and co-chief investment officer at PIMCO, a global investment firm and one of the world's largest bond investors, with approximately $2 trillion in assets under management as of December 2013. PIMCO is a subsidiary of Allianz...
NationalityEgyptian
ProfessionEntrepreneur
Date of Birth19 August 1958
CountryEgypt
growing-up giving want
I remember when I was growing up, you would go to a bank to open a deposit, and they'd give you a toaster. A free toaster. These days, if you're a company, and you go to a bank, they could easily turn you away! They don't want your deposits anymore.
mean negative currency
If you happen to be the only one with negative interest rates, you also weaken your currency, which means you make your exports more competitive.
risk world today
The world changes! So we're in a situation today where the only policymakers that have flexibility are central banks. But they don't have the instruments! So they've had to experiment, and the more you experiment, the more uncertainty and the higher the risk of collateral damage.
silly government games
The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments who want me to pay them. I am going to go into the stock market where I can get positive returns!"
america self today
Today's reports confirm that, unfortunately, post-crisis America is still not back to its good economic self.
waiting demand hey
As we spend more, and as companies are pushed to invest, they say, "Hey wait a minute! There's more demand in the system. Let's invest more."
country america may
America's downgrade may serve as a wakeup call for its policymakers. It is an unambiguous and loud signal of the country's eroding economic strength and global standing. It renders urgent the need to regain the initiative through better economic policymaking and more coherent governance.
jobs growth faces
Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to growth and job creation in the U.S.
mistake should knows
Investors should invest on what they know. The biggest mistake is to invest on what they don't know.
political approval needs
The one instrument that has relative political autonomy is monetary policy. Central banks do not need to go to Congress to get approval for an interest rate hike.
country europe effort
It is hard to imagine that, having downgraded the US, S & P will not follow suit on at least one of the other members of the dwindling club of sovereign AAAs. If this were to materialise and involve a country like France, for example, it could complicate the already fragile efforts by Europe to rescue countries in its periphery.
people currency assets
Most people are under exposed to global assets, including foreign stocks, bonds and currencies.
loss rating consumers
The once-unthinkable loss of the AAA rating will constitute a further hit to already fragile business and consumer confidence.
thinking europe rewards
We normally think if you're going to lend someone money, you should get some reward for doing this. In Europe, it's a tax!