More and more investors are coming around to the opinion that the Fed is largely powerless in times of a balance sheet recession.  In an interview this morning Mohamed El-Erian of PIMCO discusses the dangers of deflation and the remaining options for the Fed and the government.  Unfortunately, I think El-Erian is even too optimistic about this Federal Reserve.  Mr. Bernanke has been wrong about this crisis since before its inception and has misunderstood it at every twist and turn.  Why anyone would turn to him for assistance now is simply mind boggling:

Source: CNBC


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Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

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  • Charlie Lefaux

    With all deference to El-Erian, there is nothing new in this segment.

  • Walter

    So are you saying they should listen to you then ? hahaha.

  • http://www.pragcap.com TPC


    This website is reserved for adults and people who are genuinely interested in having intelligent and thoughtful debates about the markets and the economy. If you can’t act like an adult then please let me know in advance and I will take the appropriate measures to ensure that your virgin eyes are not corrupted by the pollution you can’t help but read here.



  • Jerry D

    Don’t fight the Fed! Don’t let Bill Gross fool you!
    Pimco’s classic head fake. They tells you one thing but do another.
    They know the Fed won’t allow deflation and will print money until
    inflation comes roaring back. If the Fed wants inflation, we will have inflation!

  • V

    It is somewhat ironic that it is the 71st anniversary of the Wizard of Oz, and all eyes are looking to wizard Bernanke for answers.

  • Walter

    Come on TPC don’t get your panties in a bunch :-)

    It was just a joke, lighten up. Among all this crappy news a little amusement wont hurt right?

    If you dont like it I wont put such comments, pinky promise ..hehe

  • http://www.pragcap.com TPC

    Walter (adjusts panties),

    I was teasing as well. I’ve only banned one guy here and that’s because he decided it was okay to send me threatening emails because I tried to tell him to be more cautious about a leveraged long position he had in the banks in April…..Before they crashed….Oops. I actually feel bad having banned him. It’s not something I like to do…..

  • Walter


    Now that you mentioned maybe I should go and try them, must be soft on the balls :-)

    Goood to see your humour side!


  • Walter

    Oh btw as did a good job of warning the guy about banks in April, hopefully you shorted, made $$$ and bought yourself some men’s underwear.

    Sorry couldn’t resist! Hahaha…