Pimco: Greek Crisis Set to Infect Rest of the World

Friday, 07 May 2010 08:14 AM
By: Julie Crawshaw

Greece’s debt problems are about to spread to other countries and could infect the United States unless this country starts solving its own mounting debt problems, warns Mohamed El-Erian, co-CEO of Pacific Investment Management Company (Pimco), which runs the world’s largest bond fund.

"We've seen a crisis start in a country — Greece — become regional, impact the whole of the euro zone and is on the verge of truly going global," El-Erian says, so “we should take this very seriously."

The system is slowly starting to have cascading failures, El-Erian notes.

“It's like a pipe that you need to be free-flowing and it starts to clog,