Financial Semantics: Dubai’s Crisis is Pimco’s Correction……
“Dubai's debt woes may serve as a catalyst for a correction in stock markets but it does not signal a new crisis, investment manager Mohammed El-Erian told CNBC Friday. Investors dumped stocks Thursday and Friday and took refuge in the dollar after Dubai announced it had asked for a 6-month standstill on debt of around $59 billion. Some analysts said the fears will be short-lived and the situation creates buying opportunities. "There will be opportunities created… but this is a catalyst call. Let's see to what extent markets reprice," El-Erian, who is Pimco's co-CEO and co-chief investment officer, said in an interview."This is a lag financial effect," he said, adding that the crisis shows financial markets are not yet calm after last year's collapse. "Now I think investors are going to look much closer to fundamentals," he added……......”
One man’s correction is another man’s crisis, especially if that other man is a bank heavily exposed in the region, or someone who is heavily in debt.
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