Bridgewater’s Dalio Sees Virus Pandemic Causing $20 Trillion Hit to Global Economy
Ray Dalio urges US government to allocate $ 4 trillion to fight coronavirus
Investor Ray Dalio Says Coronavirus Outbreak Will Cost US Corporations Up To $ 4 Trillion And Also Ruin Many People.
«What is happening now has never happened before in our lives. This is a real crisis», Business and consumers will suffer huge losses. The government needs to spend much more money on regulating the situation», – he thinks.
The total volume of US GDP at the end of 2019 was more than $ 21 trillion. Founder of hedge fund Bridgewater Associates also estimated global corporate losses of $ 12 trillion due to pandemic.
Dalio said the fiscal stimulus package should be at least 1.5 trillion to 2 trillion, depending on the form of financial assistance such as loan guarantees and loans..
White House proposes stimulus package worth $ 850 billion to over $ 1 trillion to combat COVID-19 impact and help mitigate the impact of a possible recession. The package will include direct payments or tax cuts, and small business assistance.
On the monetary front, the Fed has announced plans to invest an additional $ 1 trillion in the US economy. through the purchase of assets and reduce interest rates to zero. Regulators around the world have also taken steps to contain borrowing costs as countries prepare to ramp up spending to offset the impact of the pandemic.
Corporate losses in the U.S. from coronavirus will top $4 trillion: Bridgewater founder Ray Dalio
«We are now in a position where there should be debt restructuring and monetization of this. The market is not what it was in the 1930s when the dollar devalued», – noted Dalio.
Markets feared amid the coronavirus pandemic as investors dumped stocks over fears the government's response to the outbreak would not be sufficient to stave off the economy's tilt into recession. Index S&P 500 was almost 30% below the record set last month.
Bridgewater has approximately $ 160 billion in assets under management.
Dalio did not disclose specifically what his hedge fund invested in during the crisis, but said the mechanics in which global central banks lost their grip influenced his investment decisions..
Ray Dalio considers the state of the world economy a failure