Gross: Debt disparity will keep returns 'low' for years

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

The legendary 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 and reminiscent of a spindly-legged baby giraffe, having lots of upward potential, but still striving for balance after a series of missteps, the most recent of which was the Asian crisis over a decade ago. "And so they produce for export, not internal consumption...

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