El-Erian: Untested Fed Measures New Normal Symptom

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Nov. 8 (Bloomberg) -- Mohamed El-Erian, chief executive and co-chief investment officer at Pimco, discusses market confusion due to reliance on monetary policy solutions and how long it may take for the U.S. economy to move forward. He speaks on Bloomberg Television’s “In The Loop.”

Investor, to invest in this market.

How does a number like this play into your new normal scenario and how fast or at what point will we get out of that scenario?

The key issue is that growth is unusually sluggish which means unemployment doesn't come down as fast as people want.

That means the fed and other central banks are unusually active in markets.

They do so using untested measures.

That is the conversation of the new normal.

There is a question mark of the true handoff of policy induced growth to long-term, genuine growth.

That question has not been answered.

The markets are going to be torn.

Bad news is good news, on the policy front.

Bad news is bad news on the fundamental front.

That fundamental tension is why investors find it difficult to reconcile short-term positions with long-term positions.

Is this going to last for many more years?

It will last as long as the other policymaking entities do not get their act together.

Whether you look out washington or the initiatives in europe, we do not see other policymaking entities step up to the plate.

It does last.

We cannot remain on this artificial policy induced roll forever.

We either turn into indigenous

This text has been automatically generated. It may not be 100% accurate.

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