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El Erian: Markets not facing reality of slow economy
Financial markets have failed to price in the remaining problems that bedevil a long-term economic recovery, Pimco’s Mohamed El-Erian told CNBC. “You come to the conclusion that the market simply hasn’t priced in the reality of what we talk about every single day,” said El-Erian, who helps run the world’s largest bond fund. “What you’re getting is a recovery phase, a healing phase that was artificially created,” he said. “The history of crises is very clear. They expose structural problems and when you look at the structural problems you need a structural response, and so far we’ve only had a cyclical response.” A lasting recovery will only be built on real growth and not that which is stimulated by government, he said. Source: CNBC, January 15, 2010. 1 comment to El Erian: Markets not facing reality of slow economyLeave a Reply | |||||||||||
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[…] El-Erian (head of Pimco) on CNBC Friday morning making my point much more articulately than I can:http://www.investmentpostcards.com/2010/01/16/el-erian-markets-not-facing-reality-of-slow-economy/?u…Bottom line, there isn’t anything about this week’s sub par data that persuades me to […]