Mohamed El-Erian Says Cyprus not a Huge Issue for U.S Markets

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Mohamed El-Erian, CEO and Co-Chief Investment Officer, Pacific Investment Management Co., participates in the 2010 Milken Institute Global Conference in Beverly Hills, California
Mohamed El-Erian, Chief Executive Officer and Co-Chief Investment Officer, Pacific Investment Management Co. in Beverly Hills, California April 26, 2010. REUTERS

PIMCO’s Mohamed El-Erian appeared on SquawkBox Monday morning and gave some insight on the situation in Cyprus and the world markets as a whole. Here are some highlights:


Is the EU Failing to Deliver Free-Trade?

  • 17 members of the EU, the more the eurozone implodes or unifies, the more outside the eurozone say they’re not sure if they want to enter

For Germany and France, Euro zone is political, for others its economic, fundamental difference


Thoughts on How the Cyprus News Will Affect US Markets

  • Very active central bank will compensate for political disfunction

  • Cyprus is a big deal, but not a huge issue for US

  • Fed cannot afford to see asset prices fall, economy healing


  • On the New Global Economy


  • Global economy extremely fluid

  • We are living in a fundamental phase of secular realignment, yet we still have a cyclical mindset


On the U.S Recovery

  • The U.S. is recovering from great innovation and entrepreneurship, we’re only held back by disfunction in Washington

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