A live Q&A with Mohamed El-Erian

July 1, 2011

On Thursday, July 7 at 9am ET, CEO of PIMCO Mohamed El-Erian will be taking your questions live and answering them here. Please join us and leave your comments and questions for him below.

El-Erian’s previous columns have talked about the European debt crisis, how to make Egypt’s revolution successful, the IMF, Dominique Strauss-Kahn and Christine Lagarde and what he learned from his recent visit to Tokyo, Japan.

You can also post your questions on the Reuters Facebook page or send them over Twitter using the hashtag #askmohamed or @kherrup.



We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Have you at any time considered nominating yourself for the Egyptian Presidency? If the answer is no, why not?

Posted by elhelwy | Report as abusive

Could you give us your view on the interaction between the EFSF/EU/ECB and the credit rating agencies on Greek debt “reprofiling”?

Posted by Cate_Long | Report as abusive


Would you consider the Post of US Treasury Secretary if President Obama asked you to replace Timothy Geithner?

Posted by JimHughes | Report as abusive

Most economists say that a Greek default is inevitable; ECB and others say that it would be disastrous.

What would a non-disastrous default look like? Is it essential that Greece leaves the Euro at the same time? And that it nationalises its banks? Should it continue with its austerity programme? How would the Greek government finance its primary budget deficit and Greece finance its current account deficit?

What would the implications be for Ireland, Portugal, Spain, Belgium, Italy, for the ECB and more generally for the Euro area?

Posted by AlanWatson | Report as abusive

In the US the Homeowners Assistance Mortgage Program was supposed to resolve the millions of bad mortgages on the banks books. The director of Tarp has rated it a failure. Are we likely to see these trillions of dollars in bad loans reappear as a threat to the global economy, and if so when.

Posted by esoclectica | Report as abusive

Mr. El-Erian,

What do you think about the impact of accelerating technology on the job market?

I just finished a book entitled “The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future.”

The book is written by an engineer and claims that advances in information technology will soon result in increasing unemployment as jobs of all types are eliminated by automation and robotics.

The book says that even white collar jobs held by college graduates will be impacted heavily, and I think there is already evidence for this.

I wonder what you think of this idea? Is this a significant problem that is being overlooked by economists? When President Obama mentioned automation in a recent interview, he has heavily ridiculed by the right-wing media.

Could this is an issue that is already contributing to our problems and will perhaps get worse?

It goes without saying that if we cannot solve the unemployment problem, and especially if it gets worse, we will NOT be able to solve the debt problem because we will see declining tax revenues, continued housing weakness, and increasing need for safety net services….

The book is here:

http://www.amazon.com/Lights-Tunnel-Auto mation-Accelerating-Technology/dp/144865 9817

And the author also has blog with many articles on the subject of technology and jobs:


Thank you,

Posted by Robert287 | Report as abusive

How do you suggest investors should prepare themselves in case of a catastrophic situation coming out of Europe?
Aside from having cash in case of a bank holiday, is it
wise to have money invested rather than in money market
funds? Do you have any other suggestions?
Thank you for responding

Posted by manena | Report as abusive

whats your take on the recent Moody’s warning on the extent of Chinese local government debt. Is there a fair chance of China heading for a hard landing?

http://www.moodys.com/research/Moodys-Sc ale-of-problem-loans-to-Chinese-local-go vernments-greater?lang=en&cy=global&doci d=PR_222068

Posted by NiketPaithankar | Report as abusive

Mohamed, is there now a need to regulate the activities of rating agencies on a European or worldwide basis? Is it reasonable to allow institutions in which wealthy investors have vested interests to pontificate on the credit status of countries with comments that are simply self-fulfilling prophecies, given the agencies’ woeful performance in the sub-prime debacle of 2008?

Posted by Hewson | Report as abusive

Good Morning, Dr. El-Erian, Your recent book, “When Markets Collide”, was not only well reviewed but widely read. As you consider market fluctuations and other events in the years subseuqent to the book’s publication, is there anything that you would consider altering, or perhaps amplifying, in a second edition? Thanks.

Posted by kdweir | Report as abusive

Do you think the modern monetary policy has been exhausted or inadequate for stimulating an economic growth?

Posted by Ananke | Report as abusive

QE2 seemed to succeed only in driving up input costs for companies & consumers,& incentivized misallocated capital. Meanwhile, trillions in Monetary Base remain idle, Velosity continues to fall, & Duration of Unemployment continues to climb.

What adaptive thinking is required to depart from the Fed’s 1931 blindspot solution, who seem benign to market feedback,in order to target solutions where they are most effective for a debt liquidation cycle?

Posted by EdenR | Report as abusive

What do you think of a financial transaction tax of one percent on all transactions in the United States? Could this type of tax be used to replace the payroll, self-employment, and corporate income taxes? Would this help increase consumer demand?

Posted by ksfrank | Report as abusive

Mr. El-Erian,
my 401 allocations include:
(1) 25% in Large Cap Blend Equities
(2) 25% in Large Cap Value Equities

Do you think this is a good hedging strategy?
Thanks in advance for your response

Paolo Giusto

Posted by Paolo17 | Report as abusive

The questions above me sound so staged its hilarious.

Posted by marc5477 | Report as abusive

When Europe collapses what happens to int’l capital flows; does the S&P remain bid or is there global contagion and risk comes off across the board. Give some sense as to timing.

Posted by DV0909 | Report as abusive

Is PIMCO too big to fail?

Posted by pdacosta | Report as abusive

Hi Mohamed

I’m interested to know what ‘firepower’ you feel policymakers have at their disposal that they are not using – especially in smaller economies – to address some of the current economic challenges. What is the cost of this firepower?


Posted by VickyinLondon | Report as abusive

Mr El-Erian
What are your thoughts on EM equities at the moment? A lot of people were predicting an IPO boom for the BRICS at the start of the year. This hasn’t materalised. In the case of India and South Korea, it has been an IPO slump in H1. Why do you think that is and what does it say about investor appetite for new issues from BRICS?

Posted by pankwan | Report as abusive