Gross warns against over-reliance on EM

Developed countries cannot rely on emerging markets to bring global growth back to pre-crunch levels, says PIMCO's Bill Gross.

The veteran bond fund manager says the gap between levels of debt in developed and developing markets means investment returns will be low for years to come. “Developing nations are not growing fast enough, at least internally, to return global growth to its old standards,” he says. “Their financial systems are immature with upward potential, but are still striving for balance after a series of missteps, the most recent being the Asian crisis over a decade ago.  “They produce for export, not internal consumption, and in the process leave a gaping hole in global aggregate demand. ...