"QE is meant to drive down the price of safe assets so much that we are all pushed into doing something risky," El-Erian said in an interview Monday at a gathering of the Financial Women’s Association of New York."Do-what?
I view the goal of QE as to increase the price of 'safe' or, risk-free, assets in order to lower the term structure of interest rates, here El-Erian has QE lowering bond prices. Maybe he misspoke, and the CNBC editor didn't catch it.
Although.....PIMCO was a contracted agent of the FRBNY during 'QE1'. Maybe this is what they really did during the first round, as ever since QE1 was over in April of this year, interest rates have fallen significantly!
Do any of these people know what the h they are doing?