Mohamed El-Erian: QE3 a Possibility This Year

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Jan 06, 2012
Mohamed El-Erian spoke with CNBC this morning about the markets for 2012. Some highlights:

  • The market reaction to positive data is very muted for three reasons: sustainability, things getting worse in Europe, general deleveraging.
  • QE3 a possibility this year; probably not effective as hoped.
  • Europe probably won't be able to muddle along another year. Will have to decide between letting the euro fragment or strengthen the euro zone. Pimco feels it will happen this year.