Wall Street Maverick Dario’s Investment Method and Bitcoin Philosophy
Mr. Dalio, founder of Bridgewater Associates, one of the world’s largest hedge funds that develops algorithm-based strategies for large corporations, sovereign wealth funds and public pensions, has a macro view of global finance. The fund’s success, he says, is largely due to his unorthodox views on money and credit. What most people think of as money is credit,” he said. It can go away. As that suggests, a large part of the process of deleveraging is realizing that much of what one thought was one’s wealth is not really there,” he says. Mr. Dalio understood the potential for the financial machine to malfunction. As early as 2006, he had diagnosed a financial system that relied on highly leveraged options, backed by quantitative easing and in search of profits. The debt was exceeding the income. Mr. Dalio’s hedge fund calculated that the United States had $839 billion in bad debt that could burst. He took this figure to the U.S. Treasury Department in early 2007 and warned that it was being overlooked.