by Michael Tarsala
The CEO of the world’s biggest bond manager, Pimco’s Mohamed El-Erian, paints a dismal picture for the U.S. economy following the presidential election.
In the latest issue of Foreign Policy Magazine, El-Erian describes the U.S. election as critical to fixing the global economy, yet he is flat-out unimpressed by the names on the ballot:
Sadly, neither Obama nor Romney has yet offered a meaningful, forward-looking economic reform program to address problems such as a malfunctioning labor market, unsustainable public finances, a broken credit system, inadequate infrastructure, and a lagging education system. The risk for the United States, as well as the global economy, is that a lack of vision and political courage ends up leading to even greater economic disappointment and financial instability, bringing with it the social unrest we’ve seen in so many other countries over the past 18 months.
El-Erian sees potential for more political bickering and brinksmanship — a stalemate that threatens to exacerbate slow growth, a high jobless rate, and add to the national debt worries.
It’s a poor atmosphere for companies seeking to expand, he says, as well as for long-term investors.
Read more about the biggest investor worries surrounding the presidential election, and potential ways that a smart investment plan could help address those concerns.
Photo by Norbert Schiller
