Ray Dalio – How the Economic Machine Works

Today, I am sharing a great 30 minute video by Ray Dalio who heads Bridgewater. Bridgewater is a very large investment manager that has assets under management amounting to around $150 billion. This video talks about the economy, money, credit, business cycles, debt cycles, central banks and printing money. It is a lucid and crisp explanation of these concepts.

 

Ray Dalio on the Economic Machine

 

You will enjoy reading more about Ray Dalio in this article from The New Yorker.

Here is a small excerpt.

Many hedge-fund managers stay pinned to their computer screens day and night monitoring movements in the markets. Dalio is different. He spends most of his time trying to figure out how economic and financial events fit together in a coherent framework. “Almost everything is like a machine,” he told me one day when he was rambling on, as he often does. “Nature is a machine. The family is a machine. The life cycle is like a machine.” His constant goal, he said, was to understand how the economic machine works. “And then everything else I basically view as just a case at hand. So how does the machine work that you have a financial crisis? How does deleveraging work—what is the nature of that machine? And what is human nature, and how do you raise a community of people to run a business?”

 

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