El-Erian: The Fed has a difficult situation it may lose control of the bond market

Sdílet
Vložit
  • čas přidán 25. 06. 2024
  • #Mohamed El-Erian #FederalReserve #Bondmarket
    Mohamed El-Erian, president of Queens' college at Cambridge University and Allianz chief economic advisor, joins Yahoo Finance to discuss the latest Fed decisions, impacts from bond market moves, and inequality due to the pandemic.
    Subscribe to Yahoo Finance: yhoo.it/2fGu5Bb
    About Yahoo Finance:
    At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.
    About Yahoo Finance Premium: With a subscription to Yahoo Finance Premium, get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
    To learn more about Yahoo Finance Premium please visit: yhoo.it/33jXYBp
    Connect with Yahoo Finance:
    Get the latest news: yhoo.it/2fGu5Bb
    Find Yahoo Finance on Facebook: bit.ly/2A9u5Zq
    Follow Yahoo Finance on Twitter: bit.ly/2LMgloP
    Follow Yahoo Finance on Instagram: bit.ly/2LOpNYz
    Follow Cashay.com
    Follow Yahoo Finance Premium on Twitter: bit.ly/3hhcnmV

Komentáře • 609

  • @keshiklex589
    @keshiklex589 Před 3 lety +43

    *Rich people play the money game to win.* *Poor people play the money game to not lose.* *The goal of truly rich people is to have massive wealth and for many of them,* *it's to help a lot of people.*

    • @gabrieldolph508
      @gabrieldolph508 Před 3 lety +2

      A lot of people don't understand this fact ma'am.

    • @mannmarvli6060
      @mannmarvli6060 Před 3 lety +1

      The high liquidity associated with crypto currencies makes it a great investment vessel if you're looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand

    • @samuelteddy.439
      @samuelteddy.439 Před 3 lety +1

      Can the real Constitution be restored? Probably not. Too many Americans depend on government money under programs the Constitution doesn't authorize, and money talks with an eloquence Shakespeare could only envy. Ignorant people don't understand The Federalist Papers, but they understand government checks with their names on them.

    • @josiegacia3397
      @josiegacia3397 Před 3 lety +1

      @@samuelteddy.439 true talk. "Anyone who is not investing now is missing a tremendous opportunity."

    • @robinsonjon8632
      @robinsonjon8632 Před 3 lety

      @@josiegacia3397 I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." (Warren buffet).

  • @claraclouse9086
    @claraclouse9086 Před 3 lety +37

    Stock can drop from top to bottom and still be a 60 bagger. All this in 10y. investing is a very long journey where our temperament gets tested. have to have the capacity to suffer for long periods. have lived through the examples above, naming the stock today is pointless.

    • @elenagomez9890
      @elenagomez9890 Před 3 lety +5

      proper research, good analysis is what you need to make profit in this constant market.

    • @Jme---
      @Jme--- Před 3 lety +4

      I have tried investing but got discouraged by the constant fluctuations in price.

    • @Mcdd7-_-
      @Mcdd7-_- Před 3 lety +3

      @@Jme--- That wouldn't bother you or be a problem if you let a coach guide you but bear it in mind that price fluctuations is part of the market but using coach makes the difference.

    • @christinadixon6974
      @christinadixon6974 Před 3 lety +3

      @@Mcdd7-_- I find myself in similar situation but mine is that i really don't know when to take profit or hold , but have you worked with a coach? what is the experience like and how can i get a good one?

    • @Mcdd7-_-
      @Mcdd7-_- Před 3 lety +10

      @@christinadixon6974 "Freda Lynn Johnson" is the coach I'm quite familiar, I cant disclose much but I have been working with her since July 2020 and she has helped grow my portfolio by 400%. To connect with her you have to search her name on the web that way you can connect with her on her webpage.

  • @ga20904
    @ga20904 Před 3 lety +44

    I got a bad feeling about this debt market and the coming crash

    • @stressfree9780
      @stressfree9780 Před 3 lety

      Stop your exaggeration! There r lazy people everywhere

    • @citydrums7525
      @citydrums7525 Před 3 lety

      It may land like a mother ship UFO on your front lawn. You may shake like a sopping-wet, scared rat. It will be very unnerving and scary...like a giant Halloween ghost, or pumpkin or vampire bat.

    • @johnbowman476
      @johnbowman476 Před 3 lety +1

      I'm not sure this economy can handle a rise in interest rates

    • @igorborovkov7011
      @igorborovkov7011 Před 3 lety

      debt just like anything can be inverted

    • @rs72098
      @rs72098 Před 3 lety

      Deflation not inflation.

  • @dieyoung8259
    @dieyoung8259 Před 3 lety +1

    Mohamed El-Erian...."my man", dropping knowledge to the masses.

  • @pjdelucala
    @pjdelucala Před 3 lety +8

    The economy is about production and supply not aggregate demand. You really can't grow an economy by using debt to increase Aggregate demand. Aggregate demand is easy to increase. It can happen overnight. Just print some money. Aggregate supply takes time to increase. The situation will be stagflation not a growing economy.
    Peter de Luca: Economist

  • @y-strap
    @y-strap Před 3 lety +37

    I like how nobody ever points out that we have around 1 million new unemployment claims a week for a year now. It’s insanity.

    • @quantumthinker3248
      @quantumthinker3248 Před 3 lety +1

      I like it too 😊🇮🇹❤️🇺🇲 bless you

    • @noneofyourbusiness5433
      @noneofyourbusiness5433 Před 3 lety

      What’s more insane is all the talk of inflation. So many unemployed, falling m2v, technology, aging demographic. Systemic inflation is a long way off yet. Any bump now is just supply issue from Covid, that’ll change.

    • @coreykolenosky5974
      @coreykolenosky5974 Před 3 lety +1

      That's o.k. they will just print money and send out the checks in perpetuity....the "new normal"...

    • @mikewilliams4947
      @mikewilliams4947 Před 3 lety +1

      Forget a 30% increase in income!!!

    • @wilee.coyote5298
      @wilee.coyote5298 Před 3 lety +2

      To the OP - Is it 1 million cumulative per week or constant? 52 million unemployed? I don't think so. 10 million total, probably, in hospitality, tourism, and restaurants, which is reasonable. They're back May 1st thru July 4th. Disneyland opens April 30th.

  • @avancedfinanceandinvesting9650

    The market place is saying that inflation is transitory, therefore atm it is in line with the FED. If one looks at the term-structure of break even, you can see that the 10-Yr BEIR is lower than the 5-Year etc (i.e. an inverted curve). This is not usually the case, whereby the curve is typically upward sloping.

  • @godinpavard5121
    @godinpavard5121 Před 3 lety +51

    Bitcoin trading is an investment that yields a lot of profits.... I just got my profit - able

    • @AllGreg_
      @AllGreg_ Před 3 lety

      Nice video , Bitcoin investment is profitable everyday and investors are making good profits but its never too late to invest in Bitcoin

    • @joewick2503
      @joewick2503 Před 3 lety

      Investing in bit~coin is one of the greatest investment now... Seriously

    • @verspriechen.m.1952
      @verspriechen.m.1952 Před 3 lety

      As a starter you can't do without a genuine and trusted trading services to help make profits within a short period of time

    • @bernedofelix498
      @bernedofelix498 Před 3 lety

      I thought of investing in crypto around June 2018 but I ended up using the money for something else, no regrets tho. I don’t know if it’s still safe and idea to invest now and what platform is recommended?

    • @chenglee9697
      @chenglee9697 Před 3 lety

      I'm from China but living in California....... I have been investing with Expert Wendell brown , I came across some Nice comments about him here on CZcams and I gave it a try and honestly I don't regret the move .

  • @jfausset
    @jfausset Před 3 lety +31

    He just openly said economic activity will be determined by fiscal stimulus. Do we really lack the spine as a culture to weather through a downturn without placing future generations of Americans in debt? I think so. It will all fall apart because we lack the resolve to face our problems. It will be worse than facing the music now.

    • @josefvjochem
      @josefvjochem Před 3 lety +3

      I agree. The currency will fail at some point. It might not be for awhile but it’s a mathematical certainty with the debt levels.

    • @andymcmeekin2532
      @andymcmeekin2532 Před 3 lety +3

      Of course we do, because politicians have short term goals/views, generally.

    • @kyleor7
      @kyleor7 Před 3 lety +1

      Couldn't agree more.

    • @UnCannyValley67
      @UnCannyValley67 Před 3 lety +6

      Trump and the repubs already spent wildly except their deficit spending only enriched the top 1%. We were already 20-something trillion dollars in debt. Which in and of itself is NOT as bad as it sounds, according to Paul Krugman.

    • @brendan1675
      @brendan1675 Před 3 lety +2

      People/culture are weak

  • @knockitdown20
    @knockitdown20 Před 3 lety +5

    This guy's been getting it wrong for as long as i can remember.. he went on TV no less than 10 times in mid 2020 repeatedly telling everyone not to buy equities, right at the beginning of a 40% bull run. Now he says that even if the Fed loses control and yields spike, the economy will be unaffected. Fat hope. Yield spike could lead to panic, contagion and credit crunch. Trillions of bonds underwater. Good luck El.. you're gonna need it!

    • @kokica007
      @kokica007 Před 3 lety

      He was saying buy companies with good balance sheet, stop with false narrative !

    • @citydrums7525
      @citydrums7525 Před 3 lety

      What if a giant Halloween UFO bat flew out the sky and scared the bejeebus out of the stock market and bonds? Hmm?

  • @jfausset
    @jfausset Před 3 lety +12

    The Fed cannot stimulate lending with rates this low and inflation this high. That’s the problem

    • @Briggsian
      @Briggsian Před 3 lety +2

      Exactly. If people aren't able to repay the debts that have been deferred as a result of the pandemic, then we're in real danger of a credit crunch which would result in a liquidity trap

    • @millertoyal
      @millertoyal Před 3 lety +2

      The FED creates the problem. Systemic debt.
      The last decade, corporations and consumers have taken on so much debt, because of ZIRP, very few credit worthy companies & individuals are left to lend to!

    • @method341
      @method341 Před 3 lety

      Wouldn't one borrow more at low rates when inflation is high? It's like free nominal money.

  • @Gigi11171
    @Gigi11171 Před 3 lety +1

    El-Erian is the most honest out there. I like him.

  • @ThuTroothHurtz
    @ThuTroothHurtz Před 3 lety +3

    When financial channels start turning every conversation back to "inequality" and "fairness" you know they've jumped the shark.

  • @user-ow4ke2cv4b
    @user-ow4ke2cv4b Před 3 lety +100

    Financial investment now should be in every wise individuals list

    • @smithlopez7769
      @smithlopez7769 Před 3 lety

      BITCOIN: IS THE ONLY TRUE DEMOCRACY EVER EXISTS IN THE WORLD

    • @margaretsusanne2799
      @margaretsusanne2799 Před 3 lety

      I heard his strategies are really good??

    • @isrealriley6673
      @isrealriley6673 Před 3 lety

      @@margaretsusanne2799 Yea I made profit of $13,500 trading with him last week

    • @lincolnshepard929
      @lincolnshepard929 Před 3 lety

      He has really made a good name for himself

    • @linarinks4160
      @linarinks4160 Před 3 lety

      Please how can I contact expert patrick gregory

  • @slowridefpv9668
    @slowridefpv9668 Před 3 lety +16

    As investors wise up and stop buying bonds the fed will have its hands full.

    • @stachowi
      @stachowi Před 3 lety +2

      you can't box with god... we'll all pay for it with hyperinflation

  • @watsapp3334
    @watsapp3334 Před 3 lety +35

    Waiting on the government for every bread you eat is a total waste of time ..I make 4x of my salary as a doctor trading f x recently bought another property worth 6m $ don't sleep on it get started now and create wealth yourself

    • @shawnrhoda7803
      @shawnrhoda7803 Před 3 lety +24

      Congrats sir how do you do that Do you take the trades yourself

    • @aaronabisai426
      @aaronabisai426 Před 3 lety +24

      Oh sorry about your plight friend ,I lost money too but just $500,I now have Expert Mrs e velyn as my account manager though
      Am still surprise of what I'm reading about her on how she has made allot of people rich through Fx trading

    • @user-kr8yn6id3q
      @user-kr8yn6id3q Před 3 lety +23

      @Kim Whitney You don't need to be surprise Mrs e velyn has made sucess look so easy

    • @agnesmumbi..
      @agnesmumbi.. Před 3 lety +22

      🤰the emoji is Mrs e velyn ,she is the mother of all investors

    • @lk3225
      @lk3225 Před 3 lety +22

      I really appreciate all her efforts 😊♥️

  • @mikedennis6979
    @mikedennis6979 Před 3 lety +1

    Thank You !!

  • @deanalbertson2050
    @deanalbertson2050 Před 3 lety +16

    If the Fed announces it will be buying more bonds, that would likely bring down interest rates.

    • @adambnz
      @adambnz Před 3 lety +1

      Not for long

    • @simonjawhari
      @simonjawhari Před 3 lety +5

      Already did

    • @jaym9846
      @jaym9846 Před 3 lety

      Where does it get the money to buy bonds?

    • @laxmis7713
      @laxmis7713 Před 3 lety +5

      @jay print currency, I found this joke on internet question what is difference between 1 and 1 trillion. Fed chairmen answer: 10 strokes of “0” key on laptop

    • @deanalbertson2050
      @deanalbertson2050 Před 3 lety +3

      @@jaym9846 The Fed can create the money, and buy as many bonds as they want. They call it quantitative easing.

  • @Ducotevision
    @Ducotevision Před 3 lety +9

    So...... bitcoin?

  • @gigante87
    @gigante87 Před 3 lety +10

    How would you invest your stimulus check? First I pay the rent then i buy some food, then I pay down some debt.

  • @prism7287
    @prism7287 Před 3 lety +1

    Humble Expert provides pointers on How he/she thinks. Thanks Mohmmad.

  • @reneechen7012
    @reneechen7012 Před 3 lety +3

    Printing money does not promote equality !

  • @gigante87
    @gigante87 Před 3 lety +5

    Wish they presenters would unpack "the Fed may lose control over the bond market" comment by Mo

  • @Oxazepam65
    @Oxazepam65 Před 3 lety +15

    It's not the Fed's job to reduce income inequality. Only the government can do that. And it has to be done with great caution because it could incite the most intelligent and productive people to work less or retire earlier.

    • @davebellamy4867
      @davebellamy4867 Před 3 lety +2

      They have always managed to increase income inequality, or at least asset wealth inequality. Nor can the government reduce income inequality. That's just communism and excuses for complete state control. Feudalism is here again and that's the plan.

    • @tulsaguy9963
      @tulsaguy9963 Před 3 lety

      It already has! We quit!😊

    • @tulsaguy9963
      @tulsaguy9963 Před 3 lety

      What is income inequality? If you are smart and work hard you will make more than dumb lazy people!

    • @bstatts93
      @bstatts93 Před 3 lety

      Why do you want to reduce income inequality ? Do you want your brain surgeon paid a roofers wage ? Higher skills demand higher wages. The free market solves it. Not government. Government only interferes. EVER. Want a higher wage? Up your skills.

  • @maxlewin7807
    @maxlewin7807 Před 3 lety +2

    Finally someone says the true reason for inequality

  • @rs72098
    @rs72098 Před 3 lety +2

    Most people will spend all their stimulus on bills versus investing. These are people behind on mortgage and rent payments. They know it will likely be the last stimulus check so they will be careful. We will see deflation not inflation, especially in the CPI.

  • @seek3n
    @seek3n Před 3 lety +3

    What about the banks SLR? Without the exemption wouldn't they have to buy a lot of bond?

    • @loreall.2461
      @loreall.2461 Před 3 lety

      Powell is not going to lose control of the bond markets. I think you’re on to something with the SLR, this is the ACE up his sleeve, another tool.

  • @MADMAX7330
    @MADMAX7330 Před 3 lety +5

    There's always a wisk in anything we do

  • @aligedo7589
    @aligedo7589 Před 3 lety +2

    thanks i from somalia

    • @imthebestdirector
      @imthebestdirector Před 3 lety +1

      stay there

    • @100perdido
      @100perdido Před 3 lety +3

      @@imthebestdirector Just curious but are you suggesting that Ali stay in Somalia because he would be better off there than in the U.S. or is it that you don't want him here for some reason?

  • @davidl242
    @davidl242 Před 3 lety +11

    Americans are savings alot more than ever so I buy the inflation argument, but it’s hard to see it as temporary since most people aren’t significantly impacted financially by the pandemic. What you have is the greatest shift in income equality in modern history, so the people with money are just fine with inflation but the people coming out of this pandemic in really bad shape will have to less income but higher inflation to deal with.

  • @CanadianPrepper
    @CanadianPrepper Před 3 lety +18

    These pundits always say a whole lot of nothing, "this may happen, or this may happen" the end.

    • @techno46357
      @techno46357 Před 3 lety +4

      These pundits are totally useless, why can't they predict the future with 100% accuracy!!!!

    • @JM-rr3qw
      @JM-rr3qw Před 3 lety +1

      Ask yourself: are there some things in the universe too complex for anyone to know for sure? Do you think maybe the economy is one of those things? The economy is made up of billions of people, some more weighted than others, making decisions and reacting on the fly. So do you think maybe the economy is one of those things?

    • @Jackson-fk4nm
      @Jackson-fk4nm Před 3 lety +1

      someone who claims to know exactly what the future holds is much more suspicious. if one can't hold the idea that the world is not black and white and there is a whole lot of unpredictability that (e.g., virus, inflation, supply chain disruptions, geopolitics, natural disasters, etc.) at anytime can wipe out a long-held thesis, good luck in all you do...

    • @leoli831
      @leoli831 Před 3 lety

      he usually babbles quite a bit. But he's straight to the point in this interview. Play the video from 6:33 to 6:54.....he's pretty much telling u exactly what you should be doing.

  • @laconicme
    @laconicme Před 3 lety +1

    This mantra of "the inflation is temporary" reminds me of the real estate agent in the movie The Big Short, that called falling house prices "just a gully". There is absolutely nothing to suggest this will be temporary. In fact inflation pressure has been building for years but we have been able to export most of it until now. When it finally comes, it will take years to play out.

    • @rs72098
      @rs72098 Před 3 lety +1

      Inflation when most people can't even afford rent, lol that's not happening any time soon. 2008 crisis in the big short was deflationary by the way.

  • @davisutton1
    @davisutton1 Před 3 lety +43

    Noticeably, he never mentioned spending the stimulus check on rent or food. It's a very Alice in Wonderland world we are in.

    • @maxlewin7807
      @maxlewin7807 Před 3 lety +5

      It's the creature of Jekyll island at the climatic peak

    • @jayachandranpr7673
      @jayachandranpr7673 Před 3 lety +2

      Agree.

    • @epgui
      @epgui Před 3 lety +2

      Well, that wasn't the question, because it was assumed that people who were concerned about food would buy food. If you're in a position to invest it, you're not worried about food.

    • @rs72098
      @rs72098 Před 3 lety +1

      Exactly, most of the people getting the check will spend it on past due bills, not much else. That's deflationary in my opinion, because they aren't receiving nearly enough. When the eviction moratorium expires expect deflation in the housing and rental market.

  • @andy-ti9zf
    @andy-ti9zf Před 3 lety +1

    if we have an inflation problem now what will more QE do?

  • @red149
    @red149 Před 3 lety +7

    I don't understand this . the stimulus check is not for people to invest . it was approved under the pretext that people can't afford their basic expense of living. investing means you already have some surplus !!

    • @yahoofinance6440
      @yahoofinance6440 Před 3 lety

      Thanks......for wat-ching.....

    • @WyattBrown377
      @WyattBrown377 Před 3 lety +1

      Exactly, the poor spend it on living expenses out of necessity and save nothing, while those that don't need the stimulus assistance invest it and get even richer. The lower class is getting smoked.

    • @vanessa271
      @vanessa271 Před 3 lety +2

      I know people investing stimulus checks. Not everyone receiving them are in need.

    • @red149
      @red149 Před 3 lety +2

      @@vanessa271 so why they receive it ?!

    • @vanessa271
      @vanessa271 Před 3 lety +1

      @@red149 they never asked for it...it just got deposited into their bank accounts. My friends are grad student and still financially dependent on wealthy parents so they don't need the money.

  • @chuaskh
    @chuaskh Před 3 lety +3

    El, this is a much better outfit. Good one. Keep it up!

  • @jeanbuchanan1660
    @jeanbuchanan1660 Před 3 lety

    Great

  • @wiilamscosta902
    @wiilamscosta902 Před 3 lety +25

    Poor people think of what they can buy with their money, Rich people thinks of what they can invest in with their money 💰💰💰

    • @dallasalid6317
      @dallasalid6317 Před 3 lety +3

      The rich stay rich by investing and investing without stopping then the poor stay poor by spending like the
      Rich but yet not investing like the rich

    • @zhaozhang459
      @zhaozhang459 Před 3 lety +1

      Crypto is the future

    • @gauthierwhite3500
      @gauthierwhite3500 Před 3 lety +1

      Trading crypto has been a lucrative way of making money

    • @charlesfitzgerald9583
      @charlesfitzgerald9583 Před 3 lety

      Trading with Andrew Miller has been a game changer for myself

    • @digitalassetinvestor7152
      @digitalassetinvestor7152 Před 3 lety

      Call or text him on WhatsApp

  • @davebellamy4867
    @davebellamy4867 Před 3 lety +4

    Inflation is transitory, like it was in Germany in 1923!🤣😂😅

  • @James-mw7zv
    @James-mw7zv Před 3 lety

    Gas and food prices up 10% homes and rent up like nuts. And fed telling us we need higher inflation?

  • @chuaskh
    @chuaskh Před 3 lety

    What if the bond yield is 20 pcent and still no one wants to buy it?

  • @mikeg1226
    @mikeg1226 Před 3 lety +7

    TODAY IF YOU HAD $ IN THE STOCK MARKET CONSIDER IT LIT ON FIRE AND GONE. SORRY. ALL HOT SECTORS WERE BASICALLY WIPED OUT. I THINK THE POOR ARE THE NEW WELL OFF NOW. SAD BUT TRUE.

  • @phildurre9492
    @phildurre9492 Před 3 lety

    the only thing in the titel i disagree on is: it « may » ... it will

  • @okaylexchannel2519
    @okaylexchannel2519 Před 3 lety

    that is y Buffet bought VZ for dividend and very low PE of 13 as per finviz. = undervalued plus moat and dvies. today FAANG tank while VZ went up 1%.

    • @artstationideas6479
      @artstationideas6479 Před 3 lety

      lmao Warren doesn't care about economics he literally said that in one of his interviews. This is hedge funds

  • @jawedz
    @jawedz Před 3 lety +6

    He's been so wrong for a decade since 2009. He does not understand deflationary pressure.

    • @richardl.currier4052
      @richardl.currier4052 Před 3 lety

      WRONG. EVERYTHING from commodity prices to property prices are soaring. We have INFLATION whether you want to accept it or not.

    • @jawedz
      @jawedz Před 3 lety

      @@richardl.currier4052 YOU are wrong. The in crease in commodity prices is NOT inflation.

    • @richardl.currier4052
      @richardl.currier4052 Před 3 lety

      @@jawedz You are so wrong and you know it. I only hope you get educated.
      Right now: MONEY SUPPLY is INCREASING, USD is WEAKENING, BONDS are in a BEAR MARKET, commodity prices are SKYROCKETING, food prices are through the roof, and oil will be pretty soon. Prices paid index is the HIGHEST since the 1980s.

    • @jawedz
      @jawedz Před 3 lety

      @@richardl.currier4052 You are so wrong. Look at core inflation.

    • @richardl.currier4052
      @richardl.currier4052 Před 3 lety

      @@jawedz CPI is a VERY NARROW subset of price measures. Even the Fed says we will get inflation over 2% on the CPI! If you know the history of CPI you know that it has been altered to understate inflation. On the other hand, all those factors I mentioned above, along with INFLATION EXPECTATIONS, are going UP.

  • @malceum
    @malceum Před 3 lety +7

    The Fed is intentionally creating this "situation." All they have to do is say that the amount of stimulus needed is less than anticipated or that they will intervene to keep long term bonds down. Problem solved.

    • @joelreyes9600
      @joelreyes9600 Před 3 lety

      Is not the fed is stupid people selling

    • @malceum
      @malceum Před 3 lety

      @Burt Gummer Better to delay it until the economy is back at full employment. People are going to spend a lot more if their houses and stocks are worth more.

    • @chuaskh
      @chuaskh Před 3 lety

      @@joelreyes9600 it’s the algo trading response to yield

  • @jaydubau8755
    @jaydubau8755 Před 3 lety +1

    Interviewer - How does one invest in their stimmy check?
    Mohamed - You have to pick the right stocks
    Me - thanks, that was completely worthless

  • @elvinhayes7120
    @elvinhayes7120 Před 3 lety +3

    No. "Economic growth" is not "better". We are so far past a reality in which "economic growth" is a good thing that it is sickening every time a so- called expert recites the same tired and corrupt mantra. We do not need more stuff. We do not need to consume more.

  • @d7seven
    @d7seven Před 3 lety +2

    Real estate is way out of control let the market crash

  • @mikedennis6979
    @mikedennis6979 Před 3 lety

    Inequality means set your alarm clock

  • @patton9696
    @patton9696 Před 3 lety +15

    She has the dirty librarian look going on

    • @Prash1c
      @Prash1c Před 3 lety

      I'm pretty sure she washes her hands. So, she's probably a clean librarian, if anything, thank you very much! :P

  • @fritzgrazie9680
    @fritzgrazie9680 Před 3 lety

    What are the chances that we have long-term inflation due to extended supply chain disruption, fueled by people reluctant to go back to work and fill in the gaps in the supply chain, unless they are paid significantly more than unemployment benefits.

  • @ricardoflores-oy7mv
    @ricardoflores-oy7mv Před 3 lety

    Inflation, Stagflation or deflation , this falling apart economy just pass the red line long time ago.

  • @KishoreDuddekunta
    @KishoreDuddekunta Před 3 lety +2

    Fed bigger problem will be upcoming deflation. Not inflation. Inflation is after the collapse of this 40 year bull market. He is too early like every one else tripping over Inflation. Inflation will show in the next decade not in 2021

  • @alb.1911
    @alb.1911 Před 3 lety +3

    Alternative to stock? Really? 🤣 Where are the bonds with +30% interest?

  • @Yourdeadmeat69
    @Yourdeadmeat69 Před 3 lety +2

    The bond market is Banking that REPLACEMENT Rescue America dollars is inflationary. Nothing that's a replacement for normal cash flow can be anything but sustainment of status quo. What part of inflationary is wrong is not understood.

    • @mytravelvlog4593
      @mytravelvlog4593 Před 3 lety

      correct, it simply the government telling the market specifically the FANGplus tesla,,, to pay higher interest

    • @millertoyal
      @millertoyal Před 3 lety

      It is if it's all distributed at once. If the government staggers the payments, not so much.
      But giving a group of ppl, programmed to consume a hoard of cash, all at once, after being locked down for a year, you're definitely lighting dynamite.
      I've been out of town on business for 3
      months. Just recently tried to rebook my hotel room, they're completely booked until mid April. Huge casino town, do the math!

    • @Yourdeadmeat69
      @Yourdeadmeat69 Před 3 lety +1

      @@millertoyal So much conflated.
      First the desire to get out is being borne of the 90% of the country that's employed, full hotel rooms are not revealing of anything but pent up demand built on cabin fever, a passing fancy. The $1400 is one shot, but the rest is drizzled mostly into pockets of poor to middle class over 6 months that have bills to pay. State government dollars are replenishment, not windfall. If I take the family out to a restaurant, which has been out of business 75 %, it's a restoration of business, bills get paid first, that's not a splurge.

    • @WyattBrown377
      @WyattBrown377 Před 3 lety

      Haven't thought of this angle, so you're saying for this reason we won't see inflation?

    • @Yourdeadmeat69
      @Yourdeadmeat69 Před 3 lety

      @@WyattBrown377 Correct. A bunch of this money makes people whole, not throw parties. They'll be paying back rent, not forgiven, just deferred. They'll squeeze every dollar.

  • @Yourdeadmeat69
    @Yourdeadmeat69 Před 3 lety

    9% stock growth versus point 25 bonds.

  • @dollymartin7498
    @dollymartin7498 Před 3 lety +3

    Your guest is adorable.

  • @ChalrieD
    @ChalrieD Před 3 lety

    Monetary policy will be something the fed can control it will be short term relatively, the real issue is China slowing down it’s central bank and the holes in the supply chain being exacerbated. That would bring real and long term inflation especially if our congress doesn’t force a real trade war to stop the reliance.

  • @YourNighrmare
    @YourNighrmare Před 3 lety

    Feels good knowing they Wana Kno wat I'm gone do lol!!!

  • @JourneymanLineman
    @JourneymanLineman Před 3 lety

    Real return bonds are the only bonds to own right now.

  • @nathanbercel4259
    @nathanbercel4259 Před 3 lety

    Think about the people that are getting stimulus checks. A lot of them should pay off debt or build an emergency fund.

  • @JoseonCapital
    @JoseonCapital Před 3 lety +6

    "How would you invest your stimulus check if you were getting one?" Lmao...

    • @donm565
      @donm565 Před 3 lety

      I invested my stimulus today ,when I went to the dealer for a tune up,oil change, tire rotation ect. And get my routine maintaince up to date on a 4 year old vehicle . , they said it was going to be 1800 to do all the routine maintaince that was needed , so by the time I left at the end of the day my entire stimulus check was spent and I had to add more to it for just routine maintaince on a 4 year old vehicle. So mine is gone after day one

    • @100perdido
      @100perdido Před 3 lety +2

      @@notgunnadoit7461 I agree. I am going to invest my $1400 in gold, silver, a couple of road machines and pick up a farm or two.

    • @idobackflipz
      @idobackflipz Před 3 lety

      @@notgunnadoit7461 lol you going to buy all that with 1400?

    • @peredavi
      @peredavi Před 3 lety +2

      Most of it will be invested in marijuana, alcohol, Bitcoin and Tesla. The remaining will just be wasted.

    • @WyattBrown377
      @WyattBrown377 Před 3 lety

      ​@@donm565 Hopefully there was a lot more done than an oil change and tire rotation, those should not cost anywhere near $1800. 4 years isn't that old, unless you've put a lot of miles on it already.

  • @DT-mn9py
    @DT-mn9py Před 3 lety

    Inadvertently?

  • @method341
    @method341 Před 3 lety +2

    El Erian is the master at rambling on like a true economist with no actual use.

  • @lesranger4308
    @lesranger4308 Před 3 lety

    No such animal as temporary inflation. Real inflation is in excess of 10%.

  • @goldentiger1841
    @goldentiger1841 Před 3 lety +8

    The economy is headed for "Weal Wisky days"

    • @lainiabraham2777
      @lainiabraham2777 Před 3 lety +1

      How many languages can you speak fluently?

    • @land4me2
      @land4me2 Před 3 lety

      You made me laugh so hard
      But i have tremendous respect for him.

    • @goldentiger1841
      @goldentiger1841 Před 3 lety

      @@lainiabraham2777 I can speak three, it was not meant to make fun as I do respect this fellow.

  • @1philliph
    @1philliph Před 3 lety +2

    6.5%???

    • @slowridefpv9668
      @slowridefpv9668 Před 3 lety +2

      That’s about what the true inflation is today. Shadow stats

    • @stachowi
      @stachowi Před 3 lety

      @@slowridefpv9668 CCP stats

    • @1philliph
      @1philliph Před 3 lety

      @@slowridefpv9668 yes but the context as I heard it was about growth targets.

  • @douwe4549
    @douwe4549 Před 3 lety

    They want, they beg for inflation, but they are more afraid for deflation, or worse stagflation.

  • @caroledoerr6872
    @caroledoerr6872 Před 3 lety

    Because the Fed's policy is always inflation, this is one cause of inequality. Because the US government has put a high price on college education so many young people are in debt and wages are low. This will cause a lost generation unless there is a significant change in policy by both the Fed and the US Treasury.

  • @schrodingerbracat2927
    @schrodingerbracat2927 Před 3 lety +3

    Hey! No problem! Need money? Just press a few buttons on the computer and money magically appears. Don't worry. Be happy!
    :-) :-) :-)

  • @caligulapontifex5759
    @caligulapontifex5759 Před 3 lety +13

    Get your popcorn ready and sit back. This upcoming battle between the Fed and the bond vigilantes will be EPIC!

  • @beachmama9037
    @beachmama9037 Před 3 lety

    End the FED.

  • @YourNighrmare
    @YourNighrmare Před 3 lety

    Create a liquidity problem, hail liquidity problem!!!'

  • @frankblangeard8865
    @frankblangeard8865 Před 3 lety

    Summary: Things could go this way or they could go that way. Time will tell.

  • @slovokia
    @slovokia Před 3 lety

    Government bonds are not risk free assets. A 5 year TIP at -2% is a guarenteed loss of purchasing power.

  • @scoopbls
    @scoopbls Před 3 lety

    He's been wrong for a year now. CNBC won't have him now? So Yahoo finance take him?

  • @kozmickarmakoala3526
    @kozmickarmakoala3526 Před 3 lety

    Mohammed sounds like Lilly Von Shtup in Mel Brook's hilarious BLAZING SADDLES. *~XDDD*

  • @alvinrodgers934
    @alvinrodgers934 Před 3 lety +1

    Where should people invest their stimulus check? The Meek shall inherit the GameStop.

  • @karenkirwan1280
    @karenkirwan1280 Před 3 lety

    Buy when stocks go on sale. Just pick the right companies

  • @polecabo
    @polecabo Před 3 lety

    question> What does he mean by "the feds will loose control of the bond market"? To whom?

    • @eyeconspiracy
      @eyeconspiracy Před 3 lety

      The "Fed"eral Reserve sets their short term lending rates, which allows them to manipulate all rates throughout the risk curve by domino effect. However they really can't control the long end if the bond market disagrees with them.

    • @polecabo
      @polecabo Před 3 lety

      @@eyeconspiracy very interesting

  • @YourNighrmare
    @YourNighrmare Před 3 lety

    " monetary inflation "!!!

  • @richardk.7700
    @richardk.7700 Před 3 lety

    This is probably the highest liquidity level the U.S. economy will see for several years (barring any more rescue money being needed soon for a potential stock market crash or some other type of emergency). Fed market stimulus actions and government stimulus checks have our economy (and the sock market) awash in dollars. The M2 money supply rocketed upward and is totally bloated. Since inflation has been defined as “too many dollars chasing too few goods,” the next three years will be very, very interesting. It will be fascinating to see how all those funds get absorbed. Watch out when the 10 year U.S. Treasury yield hits 2%. That’s when the fireworks show will likely begin with the bond market.

  • @drno3391
    @drno3391 Před 3 lety

    I am not sure if he is right when he says that the FED inadvertently made the rich richer... there is indeed the quantilion effect but nothing beats greed and selffishness... I am long ropes and lamp posts.

  • @thehungergames8918
    @thehungergames8918 Před 3 lety

    The price of gold 🏅points to deflation.

    • @karenkirwan1280
      @karenkirwan1280 Před 3 lety

      @JustWatch124 what happens to crypto if the grid goes down. Only gold and silver has lasted for thousands of years.

    • @karenkirwan1280
      @karenkirwan1280 Před 3 lety

      @JustWatch124 I don't have large bars lol. Small size and a stocked pantry. Cash and some tradable items and 6 vehicles. No debt. But the grid issue is a real concern. Parts and outdated. Our grid needs serious upgrades. Just saying. It's a national security concern 😟

  • @CristianCarvajalC
    @CristianCarvajalC Před 3 lety

    07:16 hahaha This is unbelievable

  • @Rnankn
    @Rnankn Před 3 lety +3

    Lol, WTF. This is insane. These people said the exact opposite only a few months ago. Who ever claimed markets are rational. It’s no longer possible to win at anything, and by win i mean survive. And by survive i mean prevent myself from stabbing myself in the face with a spoon. Im sure the bond market would be unhappy with whatever that was to yield.

  • @JinKee
    @JinKee Před 3 lety

    6:55 more than 7% growth in GDP in the USA?! is this the dollar milkshake theory?

  • @macclark4112
    @macclark4112 Před 3 lety +3

    Inflation Target is expected to be Rampant and they know it to be the case. In fact Inflation will enter Venezuelan Level Event. 1Million Percent Inflation is very probable under such Debt Load.

  • @Prash1c
    @Prash1c Před 3 lety

    Appreciate the content. Appreciate the thoughts he expressed. That said, every time I see this guy or hear this guy, I get up, get a glass of water, and make sure there's not too much salt in my water...
    In other words, if this was said to the tune of Jeopardy:
    WhAt Is yIeLd CuRvE CoNtRoL ?

  • @otrdriver5917
    @otrdriver5917 Před 3 lety

    That's what I did. I invested my stimulus money in most volatile assets. I bought ammo with it

  • @e5642
    @e5642 Před 3 lety +2

    wisk assets, mawket cowwection

    • @lainiabraham2777
      @lainiabraham2777 Před 3 lety

      How many languages can you speak?

    • @e5642
      @e5642 Před 3 lety

      @@lainiabraham2777 three actually

  • @brandonlemon2060
    @brandonlemon2060 Před 3 lety

    savvy investors buy fear and sell greed. Load up on bonds folks.

  • @EvanPriceMusicChannel
    @EvanPriceMusicChannel Před 3 lety

    all by design

  • @lesranger4308
    @lesranger4308 Před 3 lety +1

    Am I the only one that is sick and tired of hearing "Pent Up Demand" ? Are you going to watch 200 movies in one night? How many dinners can one eat at one setting? Pure Bullshit.

  • @jag5798
    @jag5798 Před 3 lety

    Finally some stock correcting aka crash again to overpriced stock prices.

  • @mcewanschampion
    @mcewanschampion Před 3 lety +1

    Silver.

  • @robertmcmanus8465
    @robertmcmanus8465 Před 3 lety

    People are dumping cash and they're buying hard assets. 100 trillion fake dollars will be chasing a very very limited amount of gold silver bitcoin copper and others. Yields would rip and we have an insolvency event. Stagflation.

  • @brandonharper2421
    @brandonharper2421 Před 3 lety +1

    I blame all these trade algorithms. 90% of the market since the 80s have been computer automation trading through human made algorithms. Humans make errors. Why are they making software to trade and have a say what does what where and when.

    • @brandonharper2421
      @brandonharper2421 Před 3 lety

      Also Inflation is fear mongering by the banks. You gain more purchasing power as a borrow than the day before if inflation rising. The banks are the losers

    • @brandonharper2421
      @brandonharper2421 Před 3 lety

      House value increases. Etc etc

  • @larrydemonte2218
    @larrydemonte2218 Před 3 lety

    I think, he thinks, they think, we think, overall nobody knows what the hell is going to happen