“This is not the time for a pedal-to-the-metal approach to investing,” he said in an interview on Bloomberg Radio today. “We are going toward a highly derisked and slimmed-down financial system, which means there will be less credit available for the economy as a whole.”
El-Erian, 50, said he expects more government regulation, less available credit and an “age of thrift” for the world.
“There will be a lot more caution,” El-Erian said.
'Setback for All' if Financial Turmoil Slows Globalization
When Markets Collide: Investment Strategies for the Age of Global Economic Change
Discussion on the book at Foray TV
Dealing with Global Fluidity
Demystifying the Hype
A Crisis to Remember
Essential task for G20 leaders is a cinema trip to see 'A Beautiful Mind'
Mohamed A El-Erian and Mike Spence