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El Erian: Markets not facing reality of slow economy

Posted By Prieur du Plessis On January 16, 2010 @ 10:15 am In Investment,Markets,Money | 1 Comment


Financial markets have failed to price in the remaining problems that bedevil a long-term economic recovery, Pimco’s Mohamed El-Erian told CNBC [1].

“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 [1], January 15, 2010.

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URLs in this post:

[1] CNBC: http://www.cnbc.com/id/34877009

[2] Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.: http://www.feedburner.com/fb/a/emailverifySubmit?feedId=921608&loc=en_US

[3] (What's this?): http://www.wikinvest.com/blogger/wikinvest_wire

[4] The Debts of the Lenders: PIMCO Meets w/Homeowner Advocacy Group: http://debtsofanation.blogspot.com/2009/10/debts-of-lenders-pimco-meets-whomeowner.html

[5] PIMCO’s Bill Gross: Ron Paul’s the best Republican candidate on the economy: http://www.valuewalk.com/2012/01/pimcos-bill-gross-ron-pauls-the-best-republican-candidate-on-the-economy

[6] PIMCO’s Mohamed El-Erian “QEIII is Likely”: http://www.valuewalk.com/2012/02/pimcos-mohamed-el-erian-qeiii-is-likely

[7] Pacific Investment Management Company (PIMCO): http://www.wikinvest.com/wiki/Pacific_Investment_Management_Company_(PIMCO)

[8] Wikinvest: http://www.wikinvest.com

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