Bill Gross: US would sink into recession without ECB, BOJ QE

In his latest investment outlook, bond investor Bill Gross said on Monday that without quantitative easing from the European Central Bank (ECB) and Bank of Japan (BOJ) the 10-year US. Treasury bond yield would "rather quickly" rise to 3.5% and the U.S. economy would sink into recession.

Key quotes:

   •   Investors must go with and embrace this financial methadone fix
   •   Without that financial methadone bonds and stock markets would sink producing a tantrum of significant proportions
   •   QE will continue even though the dose may be reduced in future years
   •   It has created and will continue to create an unhealthy capitalistic equilibrium that one day must be reckoned with