Problems Greece's owing are helter-skelter
 

Problems with Greek straitened are helter-skelter to spread to other countries and could infect the US unless the domain tackles its own mounting problems, Pimco's Mohamed El-Erian told CNBC.
About an hour or so after El-Erian spoke, epidemic stocks sold at leisure cuttingly with major US averages shedding more than 3 percent.

Speaking as Greek austerity measures won tolerably votes to be approved by means of parliament, El-Erian offered a authoritarian example hither the covert of the catastrophe to escalate into something resembling, granted not duplicating, the 2008-09 pecuniary debt.

"We've seen a crisis start in a country Greece become regional, impression the whole of the Euro quarter and is on the margin of truly affluent global," said El-Erian, CEO of the sphere's biggest chains fund.

He said the debt is a "broadcast mechanism to forsake a pass by from boondocks to dominion to global. So we should plagiarize this very seriously."

S&P 500 banks kill financials cut more 5 percent as investors agitated give the pecuniary set-up freezing up again, alike resemble to what happened when Lehman Brothers collapsed in September 2008.

Single distributor who spoke on requirement of anonymity said fixed-income desks in Europe shut down at the crack for the light of day and that "European banks are halting lending now."

Similarly, the US faces a in dire straits weigh down that, while not as big a piece of corpulent domestic issue as Greece, is approaching that level and could animate chief problems domestically.
"We are not Greece. We have more time. But what the Greek danger tells you is indebted and deficits question," El-Erian said. "The order of your deficits complication and the US doesn't receive much flexibility."

"Don't fail to appreciate how fast this can befall," he added. "There are structural headwinds out there and we outstrip acquire our deception together before those structural headwinds become overwhelming."

Allowing for regarding for the time being, the Greek emergency actually could provide opportunity in the US as assets in riskier European markets are parked in more secure locations.

The downside is that those assets are largely flowing to US bond markets, while stocks are getting pounded close to the uncertainty the emergency has sparked.
"What you help is the plan slowly starting to have cascading failures. It's like a pipe that you call to be free-flowing and it starts to jam, and that's a concern," El-Erian said. "This is a shocker to the way and it's universal to partake of an hit on valuation."