Mohamed El-Erian, CEO of the world's largest bond fund manager PIMCO, is warning that European leaders still need to do a lot more, and quickly, if they are to catch up and get ahead of the crisis.
As El-Erian tells CNBC, "Accordingly, and regrettably, the specter of volatility caused by European headlines will not recede for long. Investors need to continue to watch and worry about Europe."
There is no doubt that more travails await for Europe. There have been over a dozen summits to resolve the euro zone debt crisis. This hardly inspires confidence.
In an interview in The Washington Post, Peter Hargreaves, founder of Hargreaves Lansdown, the largest retail broker in the United Kingdom, replied to the query of what fixed income invest he would look at now with, "German bonds ( BUND , quote ) for the currency play when the euro implodes."
For a $1 million investment, Hargreaves recommends "$500,000 in Singapore dollars and $500,000 in Norwegian krone." This hardly demonstrated confidence in the economic leadership of the euro zone.
While U.S. retail investors may have a hard time following that advice, the G10 currency fund ( DBV , quote ) has a 33% holding in Norway's currency and Singapore is a substantial component of the broad emerging markets currency fund ( CEW , quote )
El-Erian dismissed the notion that the United Kingdom has made things easy for itself by opting out of the pact.
"This is not only about stress between the 17 Eurozone countries and the 10 other members of the European Union (such as Britain) that are not members of the zone," he warns. "It is also about frictions within each group."