Obama’s Favorite Economist Won’t Get Top Advisor Job

On the most recent episode of “60 Minutes”, President Barack Obama spoke of the term the “New Normal”, created by his favorite economist, PIMCO’s Mohamed El-Erian. The incredibly undeserving term, describing a world economy where growth is slowing,  investment and returns are lowering, and historical returns are few and far between, got another boost of attention. PIMCO, the world’s largest bond investor with over $1 trillion of assets under management as of 2010, is big – yes – and El-Erian is in charge. But Insider Monkey thinks this term may just have been a spur-of-the-moment TV quip that turned into a sensation.

Barack Obama serious

El-Erian coined the term back in April, 2009 on an interview on CNBC. The hoopla that followed far exceeded what new wall street slang usually gets. Three months later, Bill Gross predicted that all asset classes would return 4-5% per year during the magic “New Normal” phase.

The new normal will not be investor-friendly unless your forecasting dial is turned to “Pollyanna” or your intelligence quotient is significantly less than 100,”he said. The truth is, the S&P 500 returned more than 39% since then… but Gross and El-Erian still talk about the “new normal” and “low asset returns”.  (See the details of New Normal Nonsense)

To boot, even El-Erian admits that the probability of the New Normal becoming reality is only at 55%. Yet he remains so vocal about it. Now the government’s bigwigs are listening in on this nonsense. Barack Obama not only listens to what El-Erian says, but has been using El-Erian’s rhetoric and terms to justify the Quantitative Easing 2 program to the Chinese and German critics.

There were rumors a couple of months ago that Obama is considering El-Erian as Larry Summers’ replacement. Considering Obama’s new-found love affair with the terms “new normal” and “global imbalances,” this isn’t surprising. But Insider Monkey doesn’t believe Obama will appoint his favorite economist to the top economic advisor position. Why? El-Erian’s first name is Mohamed. Not the right reason, but reason enough for too many.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!