Ray Dalio: "There's a wealth shift that needs to take place"
..."we're going to have to reconsider who has what."
@TEDTalks (Corey Hajim): "Do you think we're heading into a
a global depression?"
@RayDalio: "Yes, but I want to be careful..."
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TED (Chris Anderson): "So do you see systemic threats tot he financial system that are bigger than what happened in 2008?" Ray Dalio: "Yeah, this is bigger than what happened in 2008." "I'll distinguish it. In 2008, we had banks, it's the same thing..."
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"you had a certain amount of leverage, things go down, too much leverage means you're broke, in accounting terms. Then you look around and you say, who are the systemically important entities that you don't want to go broke? Because, do you want to those those banks at this time"
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"And then you can make up money, and make up credit, and you can keep them alive in some way, and you did it with banks, and through the banks, where were the mortgages, and that's what it looked like." "This is more complex than that, because you have the banks, and then..."
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"and then there are those, all of those beyond the banks, all the little businesses, and it's a bigger crisis and we have a less effective monetary policy because interest rates have reached their limit, and just buying financial assets by the central bank & buying the normal..."
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"...financial assets won't work. They have to buy the debt of the government. And the government, or *the many governments,* have to be effective in getting buying power and production to those who need it around the world"
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End of conversation
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