The banking crisis will have 'a long tail' as risks move to economic from financial contagion, Mohamed El-Erian says

• Risks have shifted from financial to economic contagion, Mohamed El-Erian said.
• The lending crunch caused by the bank crisis will drag on, the top economist told Bloomberg TV.
• "This will play out probably in the third and fourth quarter and it will have a long tail."

While the worst of the bank crisis seems to have eased, risks are shifting from financial to economic contagion with no quick end in sight, Mohamed El-Erian told Bloomberg TV.

On Friday, the top economist said "the flashing red" phase is over, and the crisis is now in the "flashing yellow" phase.

He also contrasted the slower-moving credit crunch triggered by Silicon Valley Bank's failure with the abrupt freeze during the Great Financial Crisis