PIMCO’s Co-founder El-Erian Sees Real Risk That Europe May Spark Lehman-Like Financial Crisis

| December 22, 2011

The head of the world’s biggest bond fund said he sees a more than 1 in 3 chance that the euro zone will break apart and trigger a financial crisis akin to the one that devastated the global economy in 2008. From Bloomberg: “It would be the equivalent of a sudden stop in which financial markets seized […]

New Thoughts From PIMCO’s Mohamed El-Erian – Says Engage In “Constructive Paranoia”

| May 26, 2011

Here are some of his key points….Policymakers have embraced initiatives designed to boost asset prices, divorcing them from economic fundamentals.   The impact on Main Street has fallen well short of expectations. Interest rates have been repressed. The dollar has also seriously weakened. The net effect has been a double edged sword. “Good” asset price inflation has […]

El-Erian Of PIMCO (Worlds Largest Bond Fund Manager) Warns QE2 May Backfire, Sees QE3 Coming Soon

| November 3, 2010

Given the high market expectations, the US Federal Reserve had no choice but to announce a second tranche of quantitative easing, nicknamed QE2. But the measure is an inevitably blunt instrument for the difficult task of restoring growth and generating jobs. The benefits accruing to America come with burdens for other countries, and both could […]

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