Ray Dalio: Capital Markets Are No Longer 'Free Markets'

By Bloomberg / February 20, 2007 / marketsanity.com / Article Link

Recent central bank actions mean capital markets are no longer "free," according to Ray Dalio, the billionaire founder of investment management firm Bridgewater Associates. "Today the economy and the markets are driven by the central banks and the coordination with the central government."

Part 1 (parts 2 & 3 below)

Ray Dalio says central bank balance sheets will "explode" as they do whatever it takes "to keep the system afloat." The alternative is a "sinking ship."

Part 2

Ray Dalio says ultra-loose monetary policy, the growing wealth gap, and the rise of a super power to challenge the U.S. are the three major forces on the global economy and financial system.

Part 3

Ray Dalio is an American businessman and founder of the investment firm Bridgewater Associates, one of the world's largest hedge funds. In 2012, Dalio appeared on the annual Time 100 list of the 100 most influential people in the world. In 2011 and 2012 he was listed by Bloomberg Markets as one of the 50 Most Influential people. Institutional Investor's Alpha ranked him No. 2 on their 2012 Rich List. Dalio has been labeled the Steve Jobs of investing. Ray's latest books are Principles: Life and Work and Principles: Big Debt Crises.

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