Pimco Predicts ‘Risk Off’ in First Part of 2012: Tom Keene

The first part of 2012 will be “risk off” as Europe’s sovereign-debt crisis encourages demand for safety, said Mohamed El-Erian, chief executive officer at Pacific Investment Management Co.

“The ECB has made it very clear that it doesn’t believe in the bazooka,” El Erian said in an interview on Bloomberg Television’s “Surveillance Midday” with Tom Keene. “It believes in the national governments’ and other institutions’ getting their acts together first.”