El-Erian Scopes the Crisis

Mohamed El-Erian,co-CEO and c0-Chief Investment Officer of Pimco,has been scoping out the current financial crisis.The U.S. financial system doesn't have enough capital for the crisis,he said.You either sell assets or businesses.We're in the midst of a big deleveraging process.Fast changes caught the system unawares.When there is uncertainty about the system,liquidity dries up.The process will continue,resulting in a slimmer,less leveraged financial system,with a lot of banking system consolidation.Banks will go bust or merge to survive.The financial system will get slimmer over time.Europe is having issues as well.It's a global phenomenon.