El-Erian Warns Of Cascading European Bank Failures, Says Weak Countries Could Take A "Sabbatical" From The Eurozone

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.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.