Bill Gross: End of Stimulus May Cause a double dip Recession

• The inability of the government to continue pumping stimulus into the economy could promote a double dip recession. 
• As inflation becomes less a possibility due to the weakening economy, 10-year notes and 30-year bonds could provide solid investment opportunities.

"To the extent that we have had a trillion dollars worth of stimulus, from the standpoint of deficits, and more, the government basically has to continue to do that and to add to that in order to keep the economy chugging along, To the extent that that's limited, to the extent that they pull back on some of those stimulus programs—Cash for Clunkers and those types of things—then the double-dip moves into the realm of possibility." – Gross Said

• Gross said investors will need to continue to watch the Federal Reserve for the central bank’s future intent with regard to quantitative easing. 

"As long as the Fed and other central banks keep policy rates low and as long as inflation doesn't rear its head ... intermediate and longer bonds do well,”