Mohamed El Erian Pimco CNBC 11/21/08 Comments

Mohamed El Erian, Pimco's CEO, which is the worlds largest bond investment firm, was on CNBC 11/21/08 and gave some comments about the Stock Market. Mohamed El Erian is a very bright man and knows what he is talking about.

This is a crisis of the system, and now within the system - rather then look for a market bottom, look for how the crisis will morph next. GDP has been falling off a cliff, the stock market is now realizing this and pricing it in. We are looking at 4th quarter GDP that could be down 4 or 5%.

We are witnessing a redefinition of long term market landscape. I was in the Middle East two weeks ago, you would expect them to be stepping in and buying these mispriced assets but they are not, they are confused.

The bond market is telling you this is about massive liquidation, there is a heart attack in the system. It has gone from deleveraging to massive liquidation.

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