The Fed struts its market-timing skills to inject a sense of calm
<i>Breakfast with Benjamin</i>: The Fed tries to inject a sense of calm in the market, Mohamed El-Erian passes on Pimco, all economists get it wrong, a global currency war is unfolding before our eyes, and more.
- The Fed proves to be the ultimate market timer, as well as the puppet master. The safety net is getting thin and frayed, but it's still miraculously hanging in there. 'We've got your back'
- Not that Pimco is asking, but Mohamed El-Erian is still saying 'no' to the idea of returning to his former gig now that his former boss, Bill Gross, has left for Janus. 'I'm really happy with my life'
- Turns out that economists, like meteorologists, can get it way wrong and are rarely held accountable for their forecasts. Asked six months ago if interest rates would be higher by now, 100% of economists got it wrong. Being generally skewed toward higher rates
- The unfolding global currency war is becoming a test track for fueling inflation, not growth. 'The beggar-thy-neighbor policy is not about rebalancing'
- The business risks of Ebola. Everybody can't call in sick at the same time. In the U.S., worry vast exceeds the presence of the virus
- BlackRock sifts through the recent market carnage to advise tilting toward global markets, as well as large- and mega-cap stocks. Taking advantage of the mid-cycle correction