Doomsday is Coming

(marketwatch.com) The Federal Reserve's quantitative easing measures could eventually fuel bubbles in commodities, in emerging markets and in currencies, Mohamed El-Erian, chief executive of bond fund giant Pimco, said on Monday. Speaking at the Buttonwood Gathering in New York, El-Erian said that while the financial system remains under strain from a global crisis, easy money provided by the Fed is likely to "leak" into some areas, such as currencies, commodities, and emerging markets, and could lead to various bubbles. "We have a global financial crisis and the [Fed's quantitative easing measures] are not a response to this crisis but to the real economy," El-Erian said. And while much of the Western industrialized world is deleveraging, with the public sector shouldering the burden of private-sector debt, easy money provided by the Fed is seeking to escape to areas of higher yield, he said
 
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(marketwatch.com) The Federal Reserve's quantitative easing measures could eventually fuel bubbles in commodities, in emerging markets and in currencies, Mohamed El-Erian, chief executive of bond fund giant Pimco, said on Monday. Speaking at the Buttonwood Gathering in New York, El-Erian said that while the financial system remains under strain from a global crisis, easy money provided by the Fed is likely to "leak" into some areas, such as currencies, commodities, and emerging markets, and could lead to various bubbles. "We have a global financial crisis and the [Fed's quantitative easing measures] are not a response to this crisis but to the real economy," El-Erian said. And while much of the Western industrialized world is deleveraging, with the public sector shouldering the burden of private-sector debt, easy money provided by the Fed is seeking to escape to areas of higher yield, he said
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In other word, the Fed is looking for shortcut. Another doomsday evidence
 
(bloomberg.com) Greece is likely to default over the next three years because budget-cutting won’t be enough to reduce the nation’s debt burden, Pacific Investment Management Co. Chief Executive Officer Mohamed A. El-Erian said.
 
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