PIMCO boss Mohammad El-Erian was on CNBC earlier laying down the law about Europe.
Among his calls: Cascading bank failures should be a big concern, and the eurozone WILL look differently in a year, as weak countries take what he calls a “sabbatical.”
- 0:15 2010 is the year of sovereign risk, and the Greek crisis is on the verge of going global
- 1:05 The U.S. will win through more capital coming into the country, but European demand is going down, and risk aversion is rising
- 2:05 Banks in Europe are choosing not to lend because they are concerned about each other’s exposure
- 3:00 This is not 2008, so don’t pull your money out of banks yet
- 3:30 Spain debt buyers already under water, will hurt next auction
- 4:45 There is a risk of eurozone dissolution as country’s look to sort out there own problems
- 5:50 Eurozone will look different in a year’s time, with a smaller zone or further fragmentation
- 7:20 Greece tells you that debt and deficits matter
Business Insider Emails & Alerts
Site highlights each day to your inbox.