Investors and economists have been sounding the recession alarm. But one major economist who has seen warning signs mounting for many months says this potential recession is unlike what we’re used to.
That economist is Mohamed El-Erian, previously the chief executive officer of the massively influential bond-market player PIMCO. He also chaired former President Barack Obama’s Global Development Council and has written several economic best-sellers. Simply put, he’s one of the best Fed and markets watchers alive, and he hasn’t liked what he’s seen for some time now.
There’s a tendency to see economic challenges as “temporary and quickly reversible,” El-Erian wrote in a commentary for Foreign Affairs, citing the Federal Reserve’s initial thought that high inflation would be transitory or the consensus that a recession could be short.
“The world isn’t just teetering on the brink of another…
