Mohamed El-Erian On The Next Crash

Big-time economist Mohamed El-Erian says years of politicians ducking hard decisions are coming home to roost for the global economy right now. He’s with us.

Federal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington, Thursday, Feb. 11, 2016, before the Senate Banking Committee hearing on: 'The Semiannual Monetary Policy Report to the Congress.' (AP Photo/Susan Walsh)

Federal Reserve Board Chair Janet Yellen testifies on Capitol Hill in Washington, Thursday, Feb. 11, 2016, before the Senate Banking Committee hearing on: ‘The Semiannual Monetary Policy Report to the Congress.’ (AP Photo/Susan Walsh)

Mohamed El-Erian has overseen the investment of billions, trillons of dollars. Now he’s looking out on the global economy and sees trouble. Since the crash of ’08, central banks like the Fed have propped things up. Political leaders have failed to lead on underlying problems. And soon, says El-Erian, things are going to have to be really fixed or fall apart. Infrastructure, inequality, education. Fix them or watch out, he says. This hour On Point: Mohamed El-Erain on the road ahead right now.

— Tom Ashbrook


Mohamed El-Erian, chief economic advisor for the financial services comapny Allianz. Chair of President Barack Obama’s Global Development Council. Author of the new book, “The Only Game In Town: Central Banks, Instability and Avoiding the Next Collapse.” Also author of “When Markets Collide.” Columnist for Bloomberg View and contributing editor to the Financial Times. (@elerianm)

From Tom’s Reading List

Bloomberg View: A New Mindset for a Shifting Global Economy — “The road that the global economy is currently traveling will effectively come to an end soon and will yield to one of two quite different, truly contrasting alternatives: a materially better state of the world or a materially worse one.”

The Wall Street Journal: Outlook for Markets: More Volatility as Debate Over Economy Heats Up — “The market turmoil has Fed officials reassessing whether their projections for steady growth and job gains and gradually rising inflation will hold up in coming months. For now, officials are sticking to their view that the expansion will continue and interest rates will rise, though Fed Chairwoman Janet Yellen, in congressional testimony last week, emphasized that she wants to keep her options open.”

CNBC: Mohamed El-Erian warns about a day of reckoning — “Either we validate the financial asset prices and growth faster, or alternatively we will slip into a global recession with financial disorder. The path we’re on right now — and that we’ve been on for a while— is ending.”

Read An Excerpt Of “The Only Game In Town” By Mohamed El-Erian


Please follow our community rules when engaging in comment discussion on this site.
May 27, 2016
Riot police block off the Albuquerque Convention Center to anti-Trump protests following a rally and speech by Republican presidential candidate Donald Trump at the convention center where the event was held, in Albuquerque, N.M., Tuesday, May 24, 2016. (AP Photo/Brennan Linsley)

Obama at Hiroshima. Turmoil at Trump rallies. Clinton’s emails, heating up. Sanders predicts a “messy” convention. Our weekly news roundtable goes behind the headlines.

May 27, 2016
In this Oct. 27, 2015, photo,  Big Muddy Farms, an urban farm in northern Omaha, Neb. is seen amongst residential homes. (AP Photo/Nati Harnik)

Just in time for Memorial Day weekend, we’ve got top gardeners spilling the beans on how to grow everything.

May 26, 2016
This March 16, 2015 photo shows portraits of now-retired U.S. Army Sgt. 1st Class Marshall Powell, right, and his wife, Arasi, at their home in Crescent, Okla. Powell suffers from a psychological wound called "moral injury" after serving as an Army nurse in Iraq and Afghanistan. Arasi, also a soldier who served in Iraq, had received treatment for PTSD. (AP Photo/Brennan Linsley)

In advance of Memorial Day, we’ll talk with Sebastian Junger about vets coming home and missing their “Tribe.” Plus, a WWII veteran remembers life on and off and the battlefield.

May 26, 2016
This Jan. 26, 2016 file photo shows a "For Sale" sign hanging in front of an existing home in Atlanta.  Short of savings and burdened by debt, America's millennials are struggling to afford their first homes in the face of sharply higher prices in many of the most desirable cities. (AP Photo/John Bazemore, File)

No more ’empty nest’. A third of millennials now live at home with their parents. We’ll look at what’s still pushing that trend.

On Point Blog
On Point Blog
In The Garden, Mother Nature Makes The Rules
Friday, May 27, 2016

Executive producer Karen Shiffman explains why she turns to her garden for food, friends and natrual comfort.

More »
WWII Vet Larry Kirby Reflects On American Values
Thursday, May 26, 2016

Looking ahead to Memorial Day, a World War II veteran looks back at the experiences that mattered to him, both in and out of war.

More »
Gloria Steinem Explains Her ‘Bernie Boys’ Comment
Tuesday, May 24, 2016

Feminist activist Gloria Steinem explains why her apparent diss of female supporters of Sen. Bernie Sanders was anything but.

More »