Mohamed El-Erian warned Tuesday that there’s a major chance of a Greek “accident” happening, and he doesn’t foresee a debt deal happening anytime soon.
The chief economic advisor at Allianz sees a 55 percent chance of a “potential for an accident happening” that would cause policymakers to lose control. El-Erian said that probability has risen as the Greek “economy has been imploding day in and day out.”
“The reason why is because of what’s happening on the ground,” he added. El-Erian cited accelerating bank deposit outflows, capital controls and the issuance of IOUs among the problems that would hold back a deal that “buys time for Greece” to get its act together with its creditors.