From Newsmax:

Pacific Investment Management Co.'s Mohamed El-Erian said the U.S. faces "serious" economic challenges, including lagging housing and labor markets that will prove resistant to Federal Reserve stimulus efforts.

"You simply can't overcome these impediments," said El- Erian, chief executive and co-chief investment officer at Newport Beach, California-based Pimco, manager of the world’s biggest bond fund. "These are structural issues and require structural solutions."

Responses to financial crises in the U.S. and other countries "have been too cyclical and too dependent on central banks," he said Thursday at a symposium on Asian banking and finance held at the Federal Reserve Bank of San Francisco. El- Erian's remarks followed a speech by Fed Chairman Ben S. Bernanke, who said policy makers...

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