Interview with Pimco's Mohamed el-Erian

Mohamed El-Erian tells us that he believes QE3 is coming and that the Age of Credit is at Risk

From Capital Account, RT

Comments from Max Keiser:

Great interview with El-Erian… But, seriously, fat-tail bimodal paradigm shifts? First of all, the inflation/deflation debate – that Pimco seems to have just stumbled on was originally pointed out by Mike Shedlock and Steve Keen back in 2008 when Pimco, Schiff, Faber and Rogers were all talking about inflation risk (and investing accordingly) and were all wrong. Now finally Pimco has caught up to where Mish was four years ago (and that’s why he’s been outperforming PIMCO over these past four years). In my opinion, I think the inflation/deflation debate misses the point that needs to be hammered home. Policies of the Fed in the wake of the credit freeze of 2007/8 have misdirected lawmakers from going after the law breaking bankers with promises of ‘reinflating the bubble and bringing jobs back.’ Sadly, the overall debt load has increased and the giant black hole of debt at the center of the global economy is getting bigger and stronger. There is absolutely no policy at all that can overcome the need to first and foremost purge the system of corrupt bankers. This is where El-Erian drops the ball completely. He is an academic with many theories about tweaks to adjust the system. All worthless. The disfunction is empowering the worst generation of banking crooks in two hundred years and until there is a discussion about how to get rid of them expect more of the same, but worse.