Friday, November 12, 2010


Mohamed El-Erian
CEO, PIMCO:

"Advanced economies are not wired to operate at elevated levels of sovereign risk, be it Portugal’s 5 percentage points spread over German five-year bonds,

Ireland’s 7 percentage points,

or Greece’s 11 percentage points.

The longer these spreads persist, the greater the decline in investment activity and employment."

Complete commentary viewable at FT.com.


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