Mohamed El Erian spoke with CNBC this morning about the status of U.S. markets, specifically how disappointing revenues are impacting equities and new regulation.
- 0:30 The market is saying lets look at top line revenue, they want to see growth and sustainable earnings.
- 1:25 For a while revenue growth is going to be muted as deleveraging continues.
- 1:50 Growth economies are managing success well, growth is migrating to the emerging economies.
- 3:15 Financial regulation is coming to impact the flow of credit, but it might be useful in the long run if it can protect us from risks.
- 4:00 If you are worried about accidents, financial regulation is good.
- 4:30 The political system is reacting by increasing regulation to stop the socialisation of losses.
- 5:00 In order for us to navigate markets, we have to accept what is reality, not push for what we want.
- 6:45 The mindset in Washington is coming up with cyclical responses to a structural problem.