Thursday, February 9, 2012

Bridgewater Associates

I enjoy reading and getting to know new things. Today, I saw this interview of Ray Dalio by Charlie Rose.  Ray Dalio is the founder of Bridgewater Associates which is one of the largest and strangest hedge funds in the world.
By watching 11 minutes of this guy I can already see how sincere and brilliant he is. I loved this guy's humility when he said that the culture of the firm is focused around the fact that we can be wrong, so let's discuss this.

Talking about global issues, he breaks it down succinctly -

Developing creditor nation has an emerging credit bubble because of its economic model.
Developed debtor nation has low growth, unemployment, deleveraging and limited stimulus power, hence there are chances of social friction.
The eurozone has the capacity to print money and write off debt with social and economic consequences.

And that, ladies and gentlemen, is why we are in a soup today. When Charlie asked him whether he is optimistic or pessimistic, he sharply said that he is 'concerned'. This is the same view that I have had for a while now. It is troublesome to see the pretense going on without remedial action by the involved nations - the problem is, we are going to have to face our next crisis soon.

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