Ray Dalio
There's definitely a bubble in the markets
Ray Dalio
A bubble is when there's creation of wealth from various ways such as selling $50 billion worth of stock valued at trillion dollars multiples
Ray Dalio
The key question with all this wealth relative to money is who needs the money - it's a matter of who the buyers and sellers are
Ray Dalio
If we had a wealth tax or tightening of monetary policy, there has to be selling of those assets to pay those things
Ray Dalio
Bubbles don't happen because of good future estimates but because of the need for cash - do you have to sell that asset for cash for some reason
Your book takes 1929 and shows what made it go up and what made it go down - that dynamic is how bubbles work
Host
Ray Dalio
If you take who has exposures, how much leverage is used - this is about 80% into some bubble that was 100% in 1929 and 2000