Friday, March 19, 2010

Pimco: Threat of Sovereign Debt Crisis Underestimated

Governments, investors and economists don’t realize the full extent of the havoc that the sovereign debt crisis can wreak around the world, says Pimco CEO Mohamed El-Erian.

“Our sense is that the importance of the shock to public finances in advanced economies is not yet sufficiently appreciated and understood,” he says.

“Yet, with time, it will prove to be highly consequential. The sooner this is recognized, the greater the probability of being able to stay ahead of the disruptions rather than be hurt by them,” he recently wrote in the Financial Times.

For now, experts are focusing narrowly on Greece, El-Erian explains. (more)

No comments:

Post a Comment