Mohamed El-Erian, CEO and co-CIO of Pimco, the world’s largest bond investor, said some emerging market economies are doing better than those of developed countries because they had dealt with previous financial crises years earlier.
“It was the Asian crisis, it was the Russian crisis, it was the Argentine crisis, and they changed their behavior,” said El-Arian.
“Most of them are recovering much more quickly, and U.S. companies are benefiting from their ability to sell (to those emerging markets)," he added.
El-Erian also said that Pimco was not investing in Greece because it hadn’t seen steps in the right direction and warned the Greek debt crisis could spread.
“Our concern is that unless we see a major change in the next few days or weeks,” he said, “the problem of Greece will become more general rather than be truly contained.”
To turn Greece around, he said it’s necessary for Greek society, not simply the government, to buy into recommended fiscal adjustments.
El-Erian also said creditors must put up the money necessary to help Greece recover and that the recovery measures be carefully coordinated.