El-Erian: Greece Needs to Chart a Different Course

Here is an interesting interview between Mohamed El-Erian, CEO of PIMCO, and Bloomberg Television's Betty Liu and Michael McKee this morning regarding the situation in Europe and the global economy.El-Erian said that it's "striking" that German Chancellor Angela Merkel can't agree on the "easy part" and that "unfortunately it's a mess" in Europe.

Germany is repatriating 374 tons of its gold held in Paris and a further 300 tons of gold stored in New York by 2020. At current prices this is valued at $36 billion and represents 19 percent of Germany's gold reserves.

Felix Salmon submits: Mohamed El-Erian has an important piece on Greece in Thursday’s FT; if you want to boil his 750-word article down to 3, it’s basically “Greece will default”. El-Erian comes to this conclusion using three logical steps. The first:

What on earth do I know, but it seems to me that despite the recent announcements Greece is still headed for default. The head of Pimco says the deal doesn’t really go far enough:

Felix Salmon submits: Mohamed El-Erian is fast becoming the biggest and most important bear in the world when it comes to the consequences of the Greece crisis: