Unemployment will be higher, growth will be lower, because of budget deal

From ABC's This Week:

The potential budget agreement "does nothing to restore household and corporate confidence. So unemployment will be higher than it would have been otherwise, growth will be lower than it would be otherwise, and inequality will be worse than it would be otherwise."

El-Erian questioned the impact of discretionary spending cuts that will likely make up the short-term budget savings in any final agreement.

"We have a very weak economy, so withdrawing more spending at this stage will make it even weaker," El-Erian said. - Mohamed El-Erian, CEO of PIMCO, a global investment firm and one of the world's largest bond investors