Assets acquired on borrowed funds have lost value, and the collapse of Silicon Valley Bank is indicative of a global problem, Bridgewater Associates founder Ray Dalio said this week.he explained in a video posted on Monday
And when that happens,"you have everybody losing money. And that is a pervasive situation that exists throughout the economy, the world economy, the US economy," he said. Meanwhile, markets will see more borrowing in the coming years as the federal government grapples with massive budget deficits, he said. In order to fill the deficit hole, the government must borrow money by selling debt, such as US Treasurys, but debt investors need to have a high enough real return.
The obvious conclusion is that investors are flocking to risky assets.
Watch what they do, not what they say.
That is why all of them are hoarding $GC gold! Peter Thiel Included After he dumped his Bitcoin $BTC while previously telling the whole world he was bullish and was buying Bitcoin while he was dumping and cashing out his $1.8 billion in profits.