PIMCO's CEO and co-CIO, Mohamed El-Erian, was on Bloomberg to discuss his views on the fiscal cliff, the chances of it getting resolved and its impact on the U.S. stock market and economy. He also discussed global central bank policies.
-- Current concerns: Europe weakening, fiscal cliff, businesses weakening.
-- There is a tail risk that the fiscal cliff may not get resolved and that will push the economy into recession.
-- Even though housing is recovering the business side is weakening.
-- Fiscal cliff: there will be some deal eventually, a small compromise now for some big agreement in the future.
Credit and source: www.bloomberg.com, Bloomberg
Here is the video: