Decoding Wall St.: Inside the Mind of Mohamend El-Erian

Guess who was in the news, club members? It’s your favorite Wall Street insider and op-end section writer Mohammed El-Erian from bond sale king Pimco. As you may recall, we have decoded El-Erian’s various op-eds before, literally word by word, in order to build an overall foundation for what he was talking about. Our contention stands that if this guy is making business news homepages and social media feeds by mouthing the word “the”, than he has to be important. El-Erian put the pen down long enough to make a cameo on CNBC yesterday, offering the following words just oozing Wall Street insider status:

“Greece has been sacrificed in order to build that firewall. In Greece, we are sustaining the unsustainable, and it comes at a cost and the cost is a society that has to put up with tremendous austerity without seeing a light at the end of the tunnel. That’s why this package will fail just like the previous package failed.”

Literally, the decoding process on El-Erian is done word by word; the typical trader may only spew one buzzy item, but El-Erian spews an array of buzzy items that are molded into hidden concepts for others to figure out (most often do not). Back by popular demand is the “Decoding Mohammed El-Erian Toolbox.”

• Greece has been sacrificed: Stronger countries in the European Union have imposed tough conditions on Greece in terms of budgets and living standards for years to come so that it could meet its present day financial obligations. By doing so, it has created a “firewall” around Greece’s economic disease. That said, what the hell is a “firewall?"

• Firewall: European Union governments have told the world that Greece will meet its financial obligations as they will loan it money, and in the process that instills confidence (like an imaginary wall in the eyes of finance people) in the country’s finances and those of global financial institutions.

• Sustaining the unsustainable: El-Erian thinks that no matter the actions taken to prevent Greece from going bankrupt, years of horrible economic growth will cause it to eventually default on the money it owes its creditors.

• Austerity and no light at the end of the tunnel: Imagine living in Greece and being told the next eight years will be very financially challenging. Day to day living surely will go by slowly.

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Based on the book co-authored by former CNBC anchor Nicole Lapin and Wall Street analyst Brian Sozzi, Decoding Wall St., the daily Decoding Wall St. newsletter is a lifeline to unlocking, and acting upon, an endless array of hidden financial and world news clues. On FaceBook and Twitter, Decoding Wall St. releases unique streaming content daily, as a compliment to the newsletter, to help get you through interviews right on down to after work cocktail parties.  For more information, including to join the movement, please visit www.decodingwallst.com.