Sunday, August 8, 2010

Mohamed El-Erian, CEO/CO-CIO, PIMCO

Full interview
EL-ERIAN: You know, Tom, all this speaks to what Ben Bernanke coined last week as the unusually uncertain outlook. Whether you look at the data, which is pointing in all sorts of directions, whether you look at the earnings, what we’re getting right now is very, very noisy picture. And it points to an uncertain outlook. Now, there’s two ways to think about this. One is, as you mentioned, certain data of backward looking, others are forward looking. The other thing – way to think about it is the reality that during regime shifts, data gets very noisy because you’re shifting from one regime to another and our inclination is the latter. Our inclination is to think of this as natural for a regime shift and we’re moving from a regime of high growth, leveraging, debt and credit entitlement to a more delivered, slower-growing, higher unemployment world.

Marc Faber on The Calls for Dow 1000 and QE2

“Investors should’ve listened to me already six months ago, when I wrote that the Fed will continue to monetize, and this is my view , they will never let up ? … they will print and print and print, until the final crisis wipes out the entire system,” Marc Faber
“I think that massive quantitative easing will come between say 870 to 950 on the S&P and my inclination is to believe that the July first low at 1010 will actually hold , and that the worst the economy becomes the more they’ll print money and the more equities can go up,” Marc Faber.


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