Mohammed El-Erian, head of PIMCO, the world's largest bond fund, said Wednesday that Greece and other European economies would default on their debts as a means of solving their problems over the next few years.
El-Erian (left) made the prediction in a video conference, during which he was quoted by Reuters as saying, "For the next three years, we're going to see different economies work out different problems. For European economies, especially Greece, it would be through default."
This prediction came despite the fact that Greece's government managed to win a confidence vote late Tuesday, a vital achievement if Athens is to receive the next round of rescue funding from the European Union (EU) and the International Monetary Fund (IMF). German and French officials began informal talks with banks in an effort to find volunteers to participate in the bailout, The Wall Street Journal reported Wednesday.