This guy is quite the bear. Everyone is out in the pool, swimming naked and drunk and also fat and slothlike, and El-Erian is trying to tell people to stop. Back in 2007, the phrase ‘moral hazard’ was tossed around a lot, as investors plowed assets into CDOs and CLOs. The result of that foray into high yield mortgage was the very end of western finance as we knew it. This go around, the low rate environment is wrought with all sorts of malinvestment, none of which are being discussed, because, well…new highs.
Every once in a blue moon you hear a guy, with the bonafides and the credentials to support his claims, and it rings true and loud– like an air raid siren. And with the benefit of hindsight, you found it worthwhile. I suspect this is one of those clips.
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Yes, he’s so accurate… just like the “new normal” bullshit he said for years. I think he said equities would only provide like a 3% annualized return.
He’s so dumb.
“New Normal” referred to the economy and he was 100% correct. He may have made assumptions about equities based off his economic prediction, but the prediction was centered the economy – not equities.
Thinking they are gonna go at he September meeting…….seeing some serious Puts being bought in the EEM. IMHO
Is this -0.2% the best dip Im going to get to buy? Cash is piling up. 50% long and wishing I was longer. NPI
Come on,Tennessee Ernie Ford knows what he is talking about.