According to BI: Hedge fund god Ray Dalio, who runs the
highly successful Bridgewater Associates, spoke at the Council on Foreign
Relations this morning with CNBC anchor Maria Bartiromo. When asked about how Europe will play out in
the next couple of years, here's what he said:
(emphasis ours)
"It's going to be very similar to most parts of
southern European countries as a classic lost decade very similar to the Latin
American debt crisis for Latin America.
Means I think we're at the early stage of a major deleveraging in those
countries, so that will produce a depression kind of environment. What I mean by that, we will have, go back to
spending. Spending is a certain amount
of money and credit. There's a limit to
how much money. So now we take the credit.
Credit comes from private sector credit.
Private sector credit typically comes through banks. There will be a bank deleveraging. There is going to be bank deleveraging. We are in the early stages of a bank
deleveraging….
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