El-Erian Says Fed Buying Stocks Will Lead to 'Zombie' Market



April 23 — Mohamed El-Erian is chief economic advisor at Allianz, and a Bloomberg Opinion columnist. He discusses the effects of Fed’s stimulus efforts and the possibility of defaults in Europe or emerging markets. He speaks with Bloomberg’s Jonathan Ferro on “Bloomberg The Open.” His opinions are his.

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Michael Canning

Michael has a Masters's Degree in Leadership and Juris Doctorate. After working in private business for 10 years, he started writing. He covers law, business, startups, and technology. One of his passions is researching disruptive technology in business. [email protected]

34 thoughts on “El-Erian Says Fed Buying Stocks Will Lead to 'Zombie' Market

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    April 11, 2022 at 9:37 am
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    Economics is a science to manage Scares Resource, not illimited
    resourses such as the air. So, if like the air, the valueless freely printed
    mere papers/money in limitless tons (QE/Parasites' Inviting Economies) is the
    new "paradise creator sacred god" able to resolve all our problems,
    then, why people have to work, produce, pay taxes, elaborate budgets including
    public, scare of deficit, etc. QE = Irresponsible policy which leads to
    corruption and ends in general chaos. And, from the other side, inflation is,
    simillar to the slaves owner, steals years of "our working
    times/savings".

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    April 11, 2022 at 9:37 am
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    I thought it was illegal for the fed to buy stocks directly. It IS illegal. And if certain players know in advance that they are, and thereby propping up the market, that is fucking crazy illegal. There's not a word in the English language for that.

    Picture it: if say BlackRock and CIT and Goldman and a bunch of others know on the down low that the fed will not let this market fall, and the rest of us don't? And we're shorting and trading like it's all normal? Jesus, that's like communism from hell. Communism for just the 1%.

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    April 11, 2022 at 9:37 am
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    These people r on TV to put fake lotion on Taxpayers wounds while looting taxpayers in day light

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    April 11, 2022 at 9:37 am
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    Why don't they just let the markets capitulate? What's the big deal?

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  • Avatar
    April 11, 2022 at 9:37 am
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    this guy has been wrong so often the last several years

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    April 11, 2022 at 9:37 am
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    The Fed buying junk bonds marked as investment grade to preserve income for rich people is just as bad as the idea of the Fed buying stocks. A horrible moral hazard is being created. The people are not so stupid any more and I expect social unrest.

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    April 11, 2022 at 9:37 am
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    People are not as stupid as they once were. Now they are buying and downloading Karl Marx's books. The poor can do the socialism thing too.

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    April 11, 2022 at 9:37 am
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    FED and FDA are both puppets to Trump! Fed will print trillions to prop up the stock markets or risk getting abused by Trump. The FDA will approve any promising vaccine without clinical trials or risk the abuse from Trump.

    So markets will only go in one direction from here until November 3rd!!!!

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    April 11, 2022 at 9:37 am
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    It’s better to go up than down. Buy after heavy sell off and sell after a good rally or bet on options when feds are buying heavy. Don’t compare stock market with the current economy. Buy the dip and sell the news…

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    April 11, 2022 at 9:37 am
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    This needs to be a million views – Moral hazard is going out the window right now which is why the stock market is going up even with upcoming tsunami of unemployment and defaults

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    April 11, 2022 at 9:37 am
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    Zombie markets here: Nasdaq up 7% in one week,
    Gold down 2% in past week, terrible earnings reports ahead
    all time debt run-up by the Federal government.
    Let's all sing together:

    O' Give me a cashless society,
    And a world surveillance state,
    and we can all go a dancin
    right through that fiery gate!

    Hell, I'd rather have that 666 system wouldn't Uz?

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    April 11, 2022 at 9:37 am
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    Question is, how can the fed not understand what they are doing? Their purpose is supposed to be long term stability and security of the dollar.

    They HAVE to know they are undermining the only thing that really matters in monetary policy, trust.

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    April 11, 2022 at 9:37 am
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    Meanwhile the "smart money" are running pump and dump schemes to liberate the $1.8 trillion trapped in the hands of retail investors.

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    April 11, 2022 at 9:37 am
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    El Erian, thank you for not praising the fed for buying everything. The fed is destroying the free markets

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  • Avatar
    April 11, 2022 at 9:37 am
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    🧟‍♂️ ZOMBIE STOCK MARKET 🧟‍♀️
    That comes after a decade of walking-dead companies covering up their bad performance by buy backing their stocks (IBM, GE, Boeing, Airlines…) 🤦‍♂️

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    April 11, 2022 at 9:37 am
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    Prophetic Armageddon = 666 – NWO is NOW – he / she who has ears let them HEAR – for it is this Generation
    Revelation 13:17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

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  • Avatar
    April 11, 2022 at 9:37 am
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    I don't trust anyone with a non american american name talking about America, aka no accent, and from Europe, FEEL ME

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    April 11, 2022 at 9:37 am
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    With QE infinity the dollar is bound to have problems, together with other nations trying to end the USD as reserve currency.

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    April 11, 2022 at 9:37 am
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    Anyone with common sense: This will only create a bigger bubble…
    Fed: hahaha brrrrrr brrrrrr brrrrrr

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    April 11, 2022 at 9:37 am
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    I sold all my stocks months ago and bought CDs. They are guaranteed as long as America does not turn into Venezuela or Argentina.

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  • Avatar
    April 11, 2022 at 9:37 am
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    Amzn hit all time high Facebook close to all time high apple NVDA ttd all close to high only airlines it low it will comeback soon

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  • Avatar
    April 11, 2022 at 9:37 am
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    You’re not comfortable to buy now when the stock market hit a all time high you fucking tell people to buy

    Reply

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