Conversation with Bridgewater Associates' Ray Dalio | Credit Writedowns

The video below is an in-depth full hour-long segment and well worth watching. Notice that Dalio sees the credit accelerator as a key component adding to aggregate demand and the key component that creates instability in that demand. Unlike traditional econometric models that do not use the debt and credit stock as a consideration for a flow variable like spending, yet again we see that someone who anticipated the crisis does.

via Credit Writedowns