Mr. El-Erian counters that Pimco’s culture rewards people who challenge conventional wisdom.
Deep dive into the world of algo-trading :
In a mere 20 milliseconds, the world’s ‘traders’ had managed to read Bernanke’s 4549-word script, interpret it (as bearish in this case – which apparently is wrong now?) and start to sell down the major equity indices.
His method was adopted by everybody from bond investors and Wall Street banks to ratings agencies and regulators. And it became so deeply entrenched—and was making people so much money—that warnings about its limitations were largely ignored.