Eurodollar University Ray Dalio Just Warned of a Potential Financial Crisis (Here's What You MUST Know)
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Apr 15, 2025 Ray Dalio warns we might be on the brink of a full-blown financial crisis rather than just a recession. He highlights rising interest rates and their implications on the economy, particularly concerning consumer confidence and job security. Young people are increasingly turning to graduate school as a safety net amid these economic uncertainties. The podcast delves into the challenges in the treasury market and the effects of negative consumer sentiment on spending, painting a worrying picture for the future.
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Dalio's Recession Concerns
- Ray Dalio worries about a recession coupled with a monetary event, similar to 2008.
- This monetary deflation risk is signaled by treasury market volatility and other deflationary indicators.
Dalio's Deficit Reduction Recommendation
- Dalio suggests reducing the federal deficit to 3% of GDP to avoid a debt supply-demand issue.
- He believes a bond market breakdown combined with conflicts could severely shock the monetary system.
Snider's View on Treasury Market
- Snider argues that the treasury market issue is not a lack of buyers, but an excess of sellers due to deflationary money.
- This deflationary pressure increases the risk of a severe recession.