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Stocks continued their rout on Tuesday as diving bond yields raised more concern that the global economy is slowing significantly because of the spreading coronavirus. The 10-year Treasury yield hit a record low as the Dow Jones Industrial Average added to Monday’s 1,000-point drop. The Dow traded as much as 550 points lower, or 1.9%, hitting session lows as health officials gave new warnings about the possibility of a greater coronavirus spread in the U.S. The S&P 500 slid 1.3% while the Nasdaq Composite fell 1.1%. The Dow gained at the open Tuesday before the selling returned. At one point...

Finally an economic analyst gets prime-time media pundits to listen as he describes the fundamental difference between the U.S. “Economy” (Main Street) and the U.S. “Markets” (Wall Street). Charles Payne understands most of this, but El-Erian has it nailed.Allianz Group chief economic advisor, Mohamed El-Erian, accurately describes what is happening in an era where deglobalization is taking place. The U.S. economy is strong; however, the multinationals on Wall Street -invested overseas- are exposed. Thus there’s a disconnect and accompanying market volatility.This is well worth watching because this is the first well-regarded financial pundit that is speaking truth to Wall...

Here is what you need to know now as Greece enters a pivotal week in its testy relationship with the Eurozone: 1. Greece’s most immediate – as in first thing Monday morning – source of danger is its banking system. To compensate for accelerated deposit flight, the European Central Bank injected additional emergency funding on Friday to allow the banks to open on Monday. With a lot more needed, the ECB will grow more hesitant to pump in new money unless the Greek government secures an agreement with its European partners and the institutions through which they operate (the European...

The CEO of a $2 trillion investment fund said he made the decision to resign from his post after his young daughter wrote him a note listing 22 milestones he had missed in her life. California-based Mohamed El-Erian left his job as chief executive of PIMCO in mid-March. The 56-year-old El-Erian, who made $100 million in 2011 alone, chose to leave his post after his 10-year-old daughter wrote about all the special moments he was absent for in her life.

The Wall Street Journal on February 25th published a story about December’s messy corporate divorce between Bill Gross and Mohamed El-Erianas, co-Chief Investment Officers at Pacific Investment Management Company (PIMCO), the world’s largest bond fund with almost $2 trillion in assets.  The article focused on the prickly personality of Gross and foul language complaints by El-Erian during a period of stress last summer when the firm was suffering market losses and clients were withdrawing billions.  But despite a carefully crafted image of a traditional conservative bond manager for “serious” money, PIMCO has magnified returns by making trillions of dollars in high-risk...

On the Friday before Christmas, President Obama announced that he was appointing Mohamed A. El-Erian, the CEO of Pacific Investment Management Company, as the chairman of his Global Development Council. The announcement didn’t get much attention, but it should. It exemplifies what’s wrong with Obama’s approach to economic policy, which amounts to: insult rich people as “fat cats,” raise their taxes, and then choose a favored few of them for special access. If you’re not familiar with El-Erian, you must not be watching CNBC or attending the World Economic Forum at Davos. The son of an Egyptian ambassador to France...

El-Erian Explains Why Spain Desperately Needs To Avoid The 'Roach Motel' Of Outside Funding After months of resisting external aid, Spanish budget minister Cristobal Montoro said European institutions should help shore up the nation’s lenders. In fact reports suggest that there is a plan in place that would allow Spain to recapitalize its weakest banks with help from European partners. But in a Financial Times editorial, PIMCO's Mohamed El-Erian says there's a reason Spain had long avoided emergency European funding: "So far, emergency European funding has been impossible to exit, like a “roach motel”.

Investors Position for a Synchronized Global Slowdown: El-Erian Published: Saturday, 2 Jun 2012 | 12:44 PM ET By: Mohamed El-Erian CEO, PIMCO The insufficient job creation, stagnant earnings and alarming long-term unemployment highlighted by May’s disheartening jobs report underscore America’s persistent unemployment crisis. The numbers also speak to a synchronized slowdown that is now taking hold of the global economy — a phenomenon that is being signaled by virtually every other data release out of Europe, the U.S. and emerging countries. The realization of lower global growth, together with increasing financial instability in some parts of the world (particularly Europe),...

The giant bond fund PIMCO said Europe has not yet tamed its debt crisis and will soon face a “second Greece” in Portugal as the country’s economy spirals downwards. Mohamed El-Erian, PIMCO’s chief executive, said Portugal will need a second rescue as the original package of €78bn falls short, setting off a political storm over EU rescue costs. “Unfortunately, that is how it will be. It will make the financial markets nervous because they are worried about a participation of the private sector,” he told Der Spiegel. German finance minister Wolfgang Schäuble insists that there will be no further haircuts...

Tuesday's Market Preview Is Not Pretty: El-Erian Published: Monday, 5 Sep 2011 | 1:51 PM ET By: Mohamed El-Erian, CEO and Co-CIO, Pimco To state the obvious, it is shaping up to be a difficult return for U.S. markets after the Labor Day break as European stock plunge and the European Central Bank (ECB) loses some of the control it has been exercising on the Euro-zone's sovereign bond market. The best way to understand what is going on is through the following simplified sequence: banks-sovereigns-policies. Specifically: · Banks stocks led the debacle on European bourses Monday, with drops of some...

PIMCO's El-Erian: Greece Will Default In 3 Years Gregory White Oct. 25, 2010, 4:28 PM PIMCO's Mohamed El-Erian has been remarkably specific in his assertion of Greek default. Speaking at The Economist's Buttonwood conference, El-Erian declared Greece destined for default in 3 years time. El-Erian sees no way Greece can deliver on its 11% fiscal adjustment as it has never happened before. Get ready, here's who gets slammed in a Greek default >[snip]

Pimco's El-Erian Warns Inflation to Hit US, Europe Friday, May 14, 2010 10:33 AM Although price pressures are currently muted, the United States will get an uptick of inflation over the medium term, the world's biggest bond fund management company said on Thursday. Extensive money printing by central banks to buy securities in emergency measures, such as those the European Central Bank recently announced to stabilize euro zone government bond markets, will ultimately stoke inflation, wrote Mohamed El-Erian, CEO and co-CIO of Pacific Investment Management Co., or Pimco, in a three- to five-year "Secular Outlook" summary. "This potential evolution from...

"The world is on a journey to an unstable destination, through unfamiliar territory, on an uneven road and, critically, having already used its spare tire(s)." "Through a series of transitions, collisions, and trade-offs (the journey), we are heading to a world that is re-regulated, de-levered, and growing less rapidly in the industrial countries (the destination). It is a world in which concerns about the dark side of globalization temper enthusiasm for its net benefits, and in which politics matter a lot for markets and the economy." The above quote is from an excellent article by the staff of PIMCO, written...

greece Mohamed El-Erian has an important piece on Greece in tomorrow’s FT; if you want to boil his 750-word article down to 3, it’s basically “Greece will default”. El-Erian comes to this conclusion using three logical steps. The first: A number of things have to happen very fast over the next few days to have some chance of salvaging the situation. At the very minimum, the government in Greece must come up with a credible multi-year adjustment plan that, critically, has the support of Greek society; EU members must come up with sizeable funds that can be quickly released and...

Mohammad El-Erian And Paul Krugman Both Wildly Gloomy About Spiraling Crisis In Greece Joe Weisenthal | Apr. 28, 2010, 10:32 PM | 141 | comment 1 The market has been in full-on panic about Greece for awhile now -- hence the parabolic spike in short-term rates -- and now it seems the wise men of the market are fully on board. Felix Salmon points to new pieces from both Mohammad El-Erian and Paul Krugman, both of whom see nothing but bad news right now. El-Erian, in so many words, says Greece will default. Krugman is talking about the real possibility...

PIMCO: End of mortgage buys form of tightening Jennifer Ablan Tue, Mar 16 2010 NEW YORK (Reuters) - The end of the Federal Reserve's program of purchasing $1.25 trillion of mortgage-backed securities at the end of March is a form of tightening monetary policy, the chief of the largest U.S. bond fund manager said on Tuesday. Mohamed El-Erian, chief executive and co-chief investment officer of Pacific Investment Management Co, or PIMCO, said the end of the Fed's mortgage program, one of the U.S. central bank's major support programs, signals a form of credit tightening. The Federal Reserve Open Market Committee's...