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PIMCO's El-Erian: QE3 Will Not Deliver

August 31, 2012 | About:
Dheeraj Grover

Dheeraj Grover

PIMCO's El-Erian was on CNN to discuss his views on QE3, its probability and its effectiveness. he also discussed issues with Europe, Europe's Debt crisis, and what measures President Draghi of ECB should be considering and what he can deliver.

-- QE3 - Recent Fed meeting notes suggest QE3 is likely. Will it be effective? That is a question mark.

-- QE3 will not deliver the outcome but it will buy time for the U.S. hoping that other government entities in housing, in credit, in infrastructure will be able to get their act together.

-- Fiscal Cliff - PIMCO is fearing that Congress will mess this up and send the U.S. into another recession

-- Initial conditions were not right, when the Euro was set up and now they are trying to fix it on the go and that will not help.

-- Europe has taken a piecemeal approach rather than the drastic measures needed to fix Europe. President Draghi understands that but he does not have the tools as he has to rely on other entities e.g. Germany, and those entities have not been able to reach a consensus and move forward.

Here is the video:

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 5.0/5 (1 vote)


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