Pimco chief Mohamed El-Erian expects 'second Greece’ in Portugal

So much for ring-fencing in this debt contagion in Europe.

http://www.telegraph.co.uk/finance/financialcrisis/9151804/Pimco-chief-Mohamed-El-Erian-expects-second-Greece-in-Portugal.html

US economic data alarming

http://www.bloomberg.com/news/2010-08-27/pimco-s-el-erian-says-alarming-data-signals-show-u-s-economy-faltering.html

U.S. economic data are “alarming,” signaling the recovery is losing momentum, Mohamed A. El-Erian, Pacific Investment Management Co.’s chief executive officer, wrote in an opinion piece in the Washington Post.

Unemployment is high, consumer credit is shrinking and small companies are having trouble obtaining bank lines of credit, wrote El-Erian, who is also co-chief investment officer at Pimco, which runs the world’s largest bond fund. Increased government spending and additional debt purchases from the Federal Reserve are unlikely to spur a rebound, he wrote.

Gee, ya think?

Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York, cut his estimate for growth this quarter to a 2 percent annual pace. As recently as two weeks ago, he projected 4.6 percent.

Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, estimates a 2.3 percent rate of expansion, down from a June forecast of 4.1 percent.

These geniuses forecasted over 4% growth earlier? Their clients must be feeling warm and fuzzy on their stellar accuracy.