Mohamed El-Erian quotes - page 2

The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments who want me to pay them. I am going to go into the stock market where I can get positive returns!" (Mohamed El-Erian)

I remember when I was growing up, you would go to a bank to open a deposit, and they'd give you a toaster. A free toaster. These days, if you're a company, and you go to a bank, they could easily turn you away! They don't want your deposits anymore.

Mohamed El-Erian

If you happen to be the only one with negative interest rates, you also weaken your currency, which means you make your exports more competitive.

Mohamed El-Erian

[When] the market is trying to get to terms with, first, lower global growth, particularly out of emerging markets and China. And, second, the market is worried the central banks have run out of ammunition. So put these two things together, and then investors are repricing the market lower.

Mohamed El-Erian

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Mohamed El-Erian

Mohamed El-Erian - Image

Photo: World Economic Forum on Flickr, CC BY-SA 2.0

Occupation: Egyptian Businessman
Born: August 19, 1958
Quotes count: 29

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