Danger to the world economy when growth stalls

Quote from Mohd El-Erian of Pimco, manager of the world's largest bond fund.


"The concept of stall speed is not something that's familiar to the markets," he said. "That's what I find is terrifying. We can talk about the probability of recession when unemployment is already too high, when the financial deficit is 9 percent of (gross domestic product), when interest rates are already at zero percent and when a quarter of the homeowners are already underwater on their mortgages. That is a terrifying concept. That is why everything must be done to avoid a slowdown in growth."


http://www.cnbc.com//id/45253864