Mohamed A. El-Erian, chief executive and co-chief investment
officer of Pacific Investment Management Co., said in an interview
with Bloomberg Radio that a Greek exit from the euro "is probably
inevitable and therefore we should plan for it."
European Union economies are facing increased volatility,
reflecting a "policy risk premium" and a "complexity risk premium,"
El-Erian said, according to an account of the interview on the
Bloomberg News website.
El-Erian said Germany, France, Italy and Spain should help form
a smaller, "less imperfect" currency union and said Greece needs to
"focus on which step allows them medium-term viability."
Meanwhile, El-Erian said yields on 10-year Treasurys could fall
by 10 basis points or rise by 30 basis points, Bloomberg
reported.
Full story at
http://www.bloomberg.com/news/2012-05-21/el-erian-says-greek-euro-exit-probably-inevitable-tom-keene-1-.html
-Dow Jones Newswires; 212-416-2900