December, 2011 Archives

14
Dec

US Economic Setting ‘Terrifying’

by admin in News

 Cartoon by John Cole -

By Mohammed El-Erian in Bloomberg Businessweek, December 5, 2011 (http://www.businessweek.com/news/2011-12-05/pimco-s-el-erian-says-u-s-economic-setting-terrifying-.html)

Nov. 22 (Bloomberg) — Pacific Investment Management Co.’s Chief Executive Officer Mohamed A. El-Erian said U.S. economic conditions are “terrifying” as the nation struggles to recover from recession.

The odds of the U.S. returning to recession are as much as 50 percent, El-Erian said during an interview on Bloomberg Television’s “In the Loop” with Betty Liu. U.S. economic growth was worse than expected and congressional policy makers are gridlocked over what to do about the economy and the deficit, which risk exacerbating an already weak recovery, he said.

“We have less economic momentum than we thought we had and we have no policy momentum,” said El-Erian, who also serves as co-chief investment officer with Pimco founder Bill Gross at the world’s largest manager of bond funds. Read the rest of this entry »

14
Dec

Family Feud

by admin in Global Investments

Cartoon by Rob Rogers - Slow Economy

By Bill Gross from PIMCO (December 2011)
 
A 12-year-old coffee mug has a permanent place on the right corner of my office desk. Given to me by an Allianz executive to commemorate PIMCO’s marriage in 1999, it reads: “You can always tell a German but you can’t tell him much.”  It was hilarious then, but less so today given the events of the past several months, which have exposed a rather dysfunctional Euroland family. Still, my mug might now legitimately be joined by others that jointly bear the burden of dysfunctionality.  “Beware of Greeks bearing gifts” could be one; “Luck of the Irish” another; and how about a giant Italian five-letter “Scusi” to sum up the current predicament?