El-Erian thinks QE3 is a done deal for three reasons:
1) Because Bernanke went to the trouble to provide a very robust defense of what he has done so far.
2) Because Bernanke told us the problems are cyclical and not structural
3) Because Bernanke believes and said that the costs of QE3 are containable and manageable
These words lay the groundwork for more activism by the Fed
El-Erian believes that while it is obvious the Fed is suppressing interest rates, it is not clear how much it is impacting job growth.