Mohamed El-Erian Quotes

We've got to make greedy banks pass on interest rate cuts in full, and we've got to see rents coming down.

A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it.

The big question is: When will the term structure of interest rates change? That's the question to be worried about.

On private transactions, I'll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States.

It's true that monetary policy was too lax for too long, and the government encouraged lending to people who were unlikely to repay their loans.

The connection which formerly existed between the Government and banks was in reality injurious to both, as well as to the general interests of the community at large.

Talking about Korea, it has pretty high capital ratios at banks and maintains a good credit rating.

The Question to be considered is, Whether the Government have reason by a Law, to prohibit the taking more than 4 l. per cent Interest for Money lent, or to leave the Borrower and Lender to make their own Bargains.

Different countries have different kinds of financial structures.

No person shall practice usury at a rate of more than one twelfth.

Banks lend by creating credit. They create the means of payment out of nothing

A great Want of Money in any Trading Country, occasions Interest to be at a very high Rate… it is impossible by any Laws to restrain Men from giving and receiving exorbitant Interest, where Money is suitably scarce: For he that wants Money will find out Ways

You can't grow unless your banking system is expanding and you are extending credit.

If you think about it: a big bank in any country, what is it? Really, as an investment, it's a warrant on economy.

Lending rate is a function of both liquidity as well as credit demand.

The RBI is interacting with the banks every day.

What is very negative is that in every country in Europe, the largest owner of that country's sovereign bonds are that country's banks.

I'm not really worried about England's banks.

How long can interest rates stay negative? Think about this. Not only are you lending your money to governments, but you're paying them interest for the privilege of doing so.

If we speak about fundamental things, regulation of the rate is actually the function of the main regulator, namely the function of the Central Bank. And it should think of how the economy and industry react, but also of its fundamental tasks in order to ensure the stability of the rate.

I think it would be interesting to know about the Federal Reserve. I think we should audit the Federal Reserve - it's taxpayer's money that's being used there.

Having examined the nature of fractional reserve and of central banking, and having seen how the questionable blessings of Central Banking were fastened upon America, it is time to see precisely how the Fed, as presently constituted, carries out its systemic inflation and its control of the American monetary system.

We need economic growth in Europe and we need to find a solution for the excessive interest rates that are making it difficult for many countries to get their own debt under control.

The theory is that if you take interest rates negative, people are going to say, "That's a silly game! I'm not going to lend my money to governments who want me to pay them. I am going to go into the stock market where I can get positive returns!"

I think the move by Mr. Greenspan was welcomed by everyone here.