Monday, December 19, 2011

EL-ERIAN: The REAL Reason Europe Is Begging For Help From The IMF

 
 

Sent to you by Nilesh via Google Reader:

 
 

via Clusterstock by Simone Foxman on 12/19/11


EU leaders are trying to finalize a plan which would channel €200 billion ($261 billion) from the IMF to the euro rescue fund in order to bail out Europe.

But PIMCO's Mohamed El-Erian said today on Bloomberg TV that this enthusiasm for IMF support is not based on the reasons you might think.

In fact, he says, "The only argument for having the IMF there is that it can impose conditionality that Europe cannot impose on itself." And that's not necessarily a good thing.

Later in the interview, he also gave a brief outlook for 2012. He thinks the first-half of the year will be dominated by a risk-off environment, while the rest of the year is a "wild card."

Watch both snippets below:

On the IMF and Europe:

 

On 2012:

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