By Jeff Cox, CNBC.com Senior Writer
NEW YORK ( CNBC) --Bond holders of European sovereign debt ultimately are going to have to take a loss for the crisis to get resolved, Pimco CEO Mohamed El-Erian said. The head of the world's largest bond fund said the notion of "burden sharing," in which the public will not absorb the total loss for the toxic debt in Greece and other countries, will make this situation different than the financial crisis three years ago. "This time around there's going to be a lot more burden sharing," El-Erian said in a CNBC interview. "I don't think the market has quite understood that it's not simply a matter of recapitalization, but decisions are going to have to be made about burden sharing, just like they're being made today in Greece. This is what's going to be different than '08 and '09."
| More from CNBC Striking Parallels Between 2008 and 2011: Economist |
Investing Strategies: Market Mood Swings
Best Way to Play Volatility: Strategists