PIMCO’s Mohamed El-Erian is on CNBC.He’s wearing a Jets jersey.
We’ll update LIVE if he says anything notable.
After a little bit of football banter, he gets to Europe…
- The problem is not solved, he argues. We’ve seen this movie several times before, and just printing more money won’t help.
- It’s time for a “Plan B” he says.
- Ultimately, there will be haircut on bonds issued by certain governments in the Eurozone.
- If you’re buying right now, you’re just making a moral hazard bet.
- On the muni market: We are in the midst of a massive adjustment at the states.
- On Bill Gross vs. Meredith Whitney: They’re not actually saying much that’s different. Both acknowledge the need for massive adjustment. Some are going to make it; some will face way more difficulties. In order to get to $100 billion defaults (Whitney’s forecast) you need to stretch, and find some major defaults.