Mohamed El Erian Pimco CNBC 2/6/09 Comments

Mohamad El Erian of Pimco was on CNBC today, 2/6/09, and gave some comments on the economy and jobs report that was out today. The US lost 598,000 jobs in January and the unemployment rate shot up to 7.6%. The stock market is bouncing higher on this news, good sign!

Mohammad El-Erian CNBC Comments - February 6, 2009

I think the employment number is very concerning...we lost half of the total jobs in the last
few months....its telling you in a very clear and loud manner that we are in a crisis.

How to fix the financial system?

You need a shock and awe approach to banks balance sheets, you can't do it in rounds like we have been doing it. You need to impact balance sheets enough so private capital can come in, and banks lending can resume.

Take bad assets off balance sheets, its not going to be easy, its not going to be perfect, but
we need something significant.

The global economic crisis will get worse before it gets better, we need to get new capital to come into the market. Right now, the rest of the world is looking to the USA for leadership under President Obama.

For past Mohamad El Erian comments, Go Here

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