Bridgewater Founding Partner Ray Dalio First Ever Interview on CNBC

BridgeWater Associates is one of the (if not the) biggest hedge fund on the planet, with more than $79 billion under management. Ray Dalio, the founding partner, appeared for the first time on CNBC for a 24 minute interview.

A few points from the interview:
  • Believes we are in an inflationary environment and that gold is to hold. Dalio's not a deflationist.
  • "Bernanke saved us from the Second Great Depression". Dalio's statement is plain silly, given that we merely postponed the liquidation of bad debt and made the general public bear the losses. This doesn't solve the issue, but only makes the problem bigger by driving the State further toward insolvency. We are still in the midst of the Greater Depression.
  • "We need the deficits". Dalio's definitely a Keynesian. Sad.
  • Dalio prefers to order monetize the debt than to mark the debt down and admit the losses. Dalio prefers the people bear his losses while he keeps his gains. This is nothing but crony capitalism. Sad sad sad.
  • Dalio attributes the arrival of Hitler to power because people starting pay off debt or lenders to mark them down and the government didn't "orderly spread them out". He should read America's Great Depression and Reassessing the Presidency : The Rise of the Executive State and the Decline of Freedom in order to understand what really happened
Generally speaking, many of his statements make me sick. Pro-Keynesian, pro-Central Banking, pro-Government, pro-socialising losses while keeping profits to himself...

My conclusion is that you can be managing the biggest hedge fund on the planet, and yet be completely economics-illiterate and corrupt. Given that, I am wondering what kind of returns the fund will have, when deflation is finally recognised as the path we have been following.

Unfortunately, feed subscribers have to come on the post to be able to watch the video.


Dave Narby said...

He's talking his book.

I would too if I had an 89 billion dollar position to unwind.

pej said...

unfortunately, we're not talking about unwinding a trade here. I'll just consider that he's a complete ignorant instead of thinking he's doing that on purpose and is completely corrupt.