Photo: Bloomberg TV
Mohamed El-Erian told Bloomberg TV in an interview today that, while we should welcome today’s positive non-farm payrolls and employment numbers, there are still significant headwinds ahead for the U.S. economy.Funny, we thought. He said pretty much the exact same thing last month…when he appeared on Bloomberg TV…to pour cold water on the jobs report right after it came out…WHILE WEARING THE SAME TIE!
Admittedly, there were a few differences in his view of the domestic economy from last month to today. This time he argued that today’s numbers show some improvement in even the structural elements of the U.S. economy, whereas last month he said that nagging factors like long-term and youth unemployment were holding the U.S. back.
Despite lauding such developments in the newest report, however, he still sounded pretty much like a broken record:
“Overall a good report. Having said that, this is just indicative of a healing process. We’re not yet at escape velocity. We’re not yet where the labour market and therefore consumers can push this economy forward…
First, in Europe we really haven’t solved anything. Greece still has too much debt and nothing has been done to improve the growth rate of European economies. In Europe, all we’ve done is push the problem back a little bit, but we haven’t solved it, so that’s still a headwind.
We have the geopolitical headwinds that are still out there, and when you look at our own economy, we haven’t done enough on the structural side and we now have the prospects that the fiscal side is going to be contractionary. So unfortunately, the best we can do right now is just muddle along.”
Here’s El-Erian’s interview from this week:
And here's his TV hit from last month: