Pimco's Mohamed El-Erian thinks markets haven't figured out 10% unemployment: "This possibility...

|By:, SA News Editor

Pimco's Mohamed El-Erian thinks markets haven't figured out 10% unemployment: "This possibility of a very high and persistent unemployment rate is not, as yet, part of the mainstream deliberations. Instead, the persistent domination of a 'mean reversion' mindset leads to excessive optimism regarding how quickly the rate will max out, and how fast it converges back to the 5% level."