Ray Dalio talks about the recent collapse of Silicon Valley Bank (SVB) and the impacts for venture capital and real estate markets. Dalio shared his thoughts in a LinkedIn post titled “My thoughts on the collapse of Silicon Valley Bank”. Bridgewater Associates founder RayDalio talked about how the collapse of SVB is a “canary in the coal mine”, joining other billionaires raising the alarm on fallout from the lender’s collapse. Ray Dalio is well known for his work on the “Economic machine”, where he describes how the economy functions. Particularly, the interaction between productivity growth, the short term debt cycle, and the long term debt cycle. He explains this concept in interviews frequently. Ray Dalio’s books include Principles, The Changing World Order, and Navigating Big Debt Cycles.
Here is what Dalio had to say: “I think that it is a very classic event in the very classic bubble-bursting part of the short term debt cycle in which the tight money to curtail credit growth and inflation leads to a self-reinforcing debt-credit contraction that takes places via a domino falling like contagion process that continues until central banks create easy money that negates the debt-credit contraction, thus producing more new credit and debt, which creates the seeds for the next big debt problem until these short-term cycles build up the debt assets and liabilities to the point that they are unsustainable and the whole thing collapses in a debt restructuring and monetization”
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The information is valid because of the research that is done to inform you the hard part is up to us what do we do with this information.
The vocal fry is killing me…
Really tired of every top comment on all of your videos (and bazillions of others) shilling financial advisors. I don't know much about running YT channels but do you not have any way to moderate the comments?
Listening to this girl i remembered that meme.."This is an affectation of your voice…🤣"
Change the narrator and I’ll give it another shot
ORGAN TRANSPLANT!!!
Mr. Dalio is a brilliant fund manager. However, his assessment of China, the US, and the rest of the world is too misleading. US is on the brink of collapse, but so is the rest of the world. The US is relatively a bit less worse off than others. The world certainly doesn’t trust the US but they trust each other even LESS.
China has not forgotten how Russia TOOK Manchuria 130 years ago. It is a bigger national insult than losing Taiwan. They want the war to wear Russia down, as a peace maker China will conveniently take back Manchuria.
The US and the rest of the world have printed a lot of money, but China has printed 5 times more.
While China has more battleships, most of them can't travel more than 600 miles in a straight line, and China's proud carrier is an old junk from Ukraine that a Hong Kong businessman bought with the intention of turning it into a casino. It runs on diesel and takes 48 hours to warm up before it is functional.
Despite Mr. Dalio's intelligence, I am extremely disappointed in his assessment. Perhaps someone has leverage over him, or he requires organ transplants twice a year.
Opinion like his is harmful and DANGEROUS.
Future looks bright.
– PBD
Intonation of narrator^s voice is insultingly unprofessional, especially in ending sentences.
Why do you draw out the last syllable of the last word in your sentences???
The collapse of banks never a cause, always a consequence. Once a nation starts socializing business' losses or collapses with bail outs, everyone will want in on the "free" money. But, nothing can be "free". No good, no product, no service is free of cost on the production side, therefore, if you or a business get a handout from the government, that is nothing but transferring the cost to you, the taxpayer and consumer. The amount of unsecured debt in our economy is both the single greatest threat to everyone's wealth, but also the single greatest threat to the global economy. What cannot be sustained will not be sustained. A debt backed monetary system cannot be sustained.
Never knew cryptocurrency could be so challenging! Kept losing my trades and running back here on YouTube videos to learn more about all this video but is not helpful. I need help
So many chicks screaming the sky is falling.
The doom & gloom crowd have been saying this for years…eventually we will have a recession and then they will be correct, just invest long term…..
Much of the Americas, and the world, is going to starve, but there's cannibal ISIS all over both Americas, and the world now also! Result?
If we have the weak company they might not able to adapt to keep up the technologies
We debate should we hire workers to do the milk or let the machine to do the milk work
The Fed can not set rate The federal committee they are the one set up the rate
The committee do watch over bank rate. They did have the debate to determine the lending rate.
The cycle growth normal trend. We check history record. We did not see too much change but the stuff borrow monies from lost businesses were huge and saving and investment were huge While they talk earning so easy
The small investors they are the amateur investors they are huge most of them they are working class investors they alway need the protection from negligent investors and bet and richest investors rip them apart
The richest investors and the negligent investors and the bet investors they mess up our economy
Investors responsible for our economy. And as well as among banks and also holders success. They cheat the holders cause problems
Investors responsible for our economy. And as well as among banks and also holders success. They cheat the holders cause problems
Just like the Bush watched over the world trade. And stuff dragging up to today. Now the SVB bank. It is not different
Look Ray , you've been preaching the end of the world since the beginning g of the world . Any idiot knows 100 % we are headed for recession . Nobody and I mean nobody knows how bad it will be . Shut up already
Extreme boom and bust cycles can be averted if people just learn to:
1. Spend less what they earn.
2. Earn more than what they spend.
3. Avoid over leveraging
Thank you for another great video. I am also fascinated by the animations in it. Do you use a software or a personal animator?
Ponzi Schemes. Let the dominos fall. The sun will set on the empire. It will all come crashing down. House of cards this whole system.
Saudis moving a few billion bucks to a BRICS Bank,
seems to show a different issue,
as the Producer Nations unite to get a better price.
Putin's suggestion of a Gold Standard Currency was over 20 years ago.
Those Nations do have Gold now…..
Your tik tok voice is so annoyingggggg
Content like this is always stupid. Here we are 2 weeks after posting and nothing has happened. The S&P has risen along with most other commodities. Will it all crash? Of course yes. But nobody knows when or how. Quit being foolish. Be short and be patient. This fool or any other fool does not know how or when.
omg really some people came here expecting to hear when to go long or short. No wonder they are not makin any money
He genuinly shares his knowledge. What a guy, he deserves all the best
Ray is a mouthpiece for Uncle Vlad.
Economists including Ray Dalio do not have any new ideas. They basically keep repeating the same old stories and keep blaming the old things based on the same old economic models.
To me, one of the most stunning things I learned about modern economies is that money is created out of thin air when someone takes out a loan and goes into debt. I was well into my forties when I learned this about modern money. At first I did not believe it and it is certainly not what I was taught about money in my younger days. The money is created by entering numbers into the borrower’s account when the borrower takes out the loan. As the loan is paid back, the money that was created for the loan is eliminated and no longer exists, but the bank or financial institution that created the money gets to keep the interest that was paid. So, the more debt there is, the more money there is and the more interest that is paid to the bank. Modern money is mostly about getting governments, corporations, businesses and people into debt and there is also quite a bit of smoke and mirrors involved.
On the international level, debt has been used as a tool to gain power and influence over other countries for centuries. In the past century, the US perfected this technique. In the 21st century, China and some other countries have also learned this trick. The idea is to keep the borrowers continuously in debt so they can continuously keep paying interest to the “lenders”. The joke is that the money given out for the loans that make up this debt does not exist. It is basically a “fake loan” and to make the joke even better, to get a loan like this, most of us including governments of other countries have to put up some collateral, so if you default, they can take ownership of your collateral. So basically, they get whatever collateral you put up for free and with no risk since the money they “lent” you did not exist. Supposedly, this has been determined to be a legitimate way to do business! This is how the US has been able to be the dominant player in the world economy but is now being challenged.
The Gross Domestic Product (GDP) represents the size of the economy which is the amount of money the economy is worth. When the economy is continuously growing, the GDP is also continually growing. Similar to any addiction, more and more borrowing is needed to have the same effect on economic growth. When the government debt starts to become greater than the value of the Gross Domestic Product (GDP), technically it will no longer be possible to pay back the government debt. If it continues, the buying power of money will start to be significantly reduced and if the government debt starts to become several more times higher than the GDP, the money and financial systems will probably collapse. If this happens, the system is reset and the cycle is repeated. During the run up there will be some good times but, after the reset, times will probably not be good and war is also a possibility.
This cycle has been repeated continuously throughout history from the Chinese Dynasties to the Roman Empire to Germany after World War One and to Argentina, Venezuela and to many African and Asian nations in the 21st century. If the American Empire can avoid this cycle, they would be the first. The thinking that the economy always has to grow for there to be innovation, progress and prosperity may now be a problem on a finite planet with limited resources and the focus needs to be on sustainability not on growth!
The idea and thinking that the economy always has to grow for a nation to progress and to be successful may be the problem. Presently if the economy is not growing, it is considered a failure. This type of thinking cannot go on uninterrupted on a finite planet with finite resources. There needs to be flexibility in the system for the economy to expand and contract and for a contraction to be considered normal and not a problem or a failure. The contraction needs to be just as prosperous and productive as the expansion. For this type of thinking to work, there needs to be some new economic theories and models developed along with some new types of money and financial systems based on economic sustainability not on economic growth and money inflation.
I am sure there will be some Nobel prizes awarded to the academics, economists, capitalists, corporate CEO's and business leaders and of course politicians and government officials that can figure out how to make a sustainable economy work and how not to devalue the nation’s money in the process. The way we can begin to do this and improve peace and fairness at the same time is when our business and government leaders along with our brightest and smartest among us can learn to be much more truthful, honest and trustworthy and can start to understand that the wellbeing of others benefits everyone.