Ray Dalio on How the Economic Machine Works ~ market folly

Tuesday, September 24, 2013

Ray Dalio on How the Economic Machine Works

Ray Dalio, founder of hedge fund Bridgewater Associates, just released a video entitled How The Economic Machine Works (in 30 minutes).  In it, he strives to outline the viewpoint that's guided him over the years.

3 Main Forces That Drive The Economy

Dalio identifies 3 main forces:

1. Productivity growth
2. Short term debt cycle
3. Long-term debt cycle

He also says that, "credit is the most important part of the economy and probably the least understood."  Dalio also notes that it's the biggest and most volatile part of the equation.  He opines further below.

Embedded below is Ray Dalio's video of how the economic machine works:

For more from this hedge fund manager, we've highlighted lessons from Ray Dalio in Hedge Fund Market Wizards.

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