Skip navigation

Current DateTime: 12:50:07 11 Jul 2009
LinksList Documentid: 24355697
  • Highest Grossing Movies

      What are the highest grossing movies of all time, adjusted for inflation? Click ahead to find out!

  • Most Expensive Places To Live

      Each year, Mercer Consulting assembles its ranking of the most expensive places to live. Mercer compiles information from 143 cities worldwide.

  • Recession-Resistant US Cities

      Some cities have been hit much harder than others during the recession. Here are the metro areas faring the best.


Current DateTime: 12:50:07 11 Jul 2009
LinksList Documentid: 24890560
  • Boom, Bust and Blame

      The inside story of the economic crisis that has gripped the entire world.

  • E3: Gaming's Cutting Edge

      North America's premier computer and video game trade show draws tens of thousands of professionals to experience the future of interactive entertainment.

  • The Fall of GM

      A look into the fall of General Motors as the automaker heads toward bankruptcy and an effective nationalization.

Government Will Be Key to '09 Economy: El-Erian
By: CNBC.com | 05 Jan 2009 | 09:40 AM ET
Text Size

Government policy will be the key influence in how the economy acts in 2009, Pimco co-CEO Mohamed El-Erian told CNBC.

"Pay particular attention to government action," El-Erian said in a live interview. "The government, whether we like it or not, is going to be a major determinant of both relative and absolute value in '09."

In particular, he said the stimulus package to be fashioned between President-elect Barack Obama and the Democratic Congress will be watched closely on Wall Street to see who wins and loses.

"The government is going to be a major price-setter going forward," he said.

El-Erian said the new year promises to be a "bumpy journey" in which investors should shift their focus from the safety of government Treasury notes and into other vehicles.

Among his recommendations are municipal bonds, Federal Deposit Insurance Corporation-backed paper, high-quality investment grade bonds, bank debt and Treasury Inflation-Protected Securities, or TIPS.

"There's a whole range of instruments that are protected" from risk, he said.

But the best investment decisions, according to El-Erian, will be those based on policy adjustments of the incoming administration.

"'08 was a year when the unthinkable was thinkable. Why? Because Wall Street got caught offside," he said. "There was a massive implosion of the financial sector and there was a contamination in the real economy. In such an environment policy mistakes are inevitable. The story for '09, for this coming year, is a recognition that we are now in the midst of this bumpy journey to a new destination."

© 2009 CNBC.com
Tools:
Print EmailAdd This share icon


Current DateTime: 03:50:00 10 Jul 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:09 10 Jul 2009
LinksList Documentid: 29779196

Current DateTime: 06:35:27 10 Jul 2009
LinksList Documentid: 29779199

Current DateTime: 01:05:34 10 Jul 2009
LinksList Documentid: 29779198
CNBCCNBC
About CNBC  |  Site Map  |  Privacy Policy  |  Terms of Service  |  Video Reprints  |  Advertise  |  Help  |  Contact
Partners: AOL Money  |  BloggingStocks.com
CNBC is a Division of NBC Universal
  Data is a real-time snapshot *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
Thomson ReutersThomson Reuters