There is clearly a tooth missing in one of the gears in El-Erian’s brain, but the illogic he exhibits is spreading like an epidemic everywhere.
http://www.zerohedge.com/news/2018-12-30/roar-stupidity-now-deafening
Then El-Erian moves to the realm of lunacy:
The economy will remain strong, growing at 2.5%-3.0% but because what is happening in the rest of the world, because liquidity conditions have changed markets will remain volatile, so don’t be surprised if you see these 1000-point swings in the Dow, that is the new reality for now, and it reflects the fact that we are coming from a very good 2017.
Aside from the abysmal writing, El-Erian seems to rightly identify that the REST OF THE WORLD’S problems are happening because the Fed is reducing liquidity in the world’s global currency, but then he thinks the nation that is totally dependent on that currency (the US, in case you are an El-Erian fan who is slow to follow along) will continue to see a strong economy! Why would that nation not suffer the same settlement the rest of the world is experiencing?
Getting even crazier, Rl-Erian thinks 1,000-point swings in the Dow becoming the new norm are not going to be a wrecking ball? He doesn’t think that the “massive market accident” he claims is necessary for a recession is going to happen with a 1,000-point wrecking ball swinging back and forth through the china shop on a regular basis?
Seriously?
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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