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The euro will survive, says Bridgewater Associates Ray Dalio. However, he does predict a...

The euro will survive, says Bridgewater Associates Ray Dalio. However, he does predict a “10 to 15 year managed depression” in Southern Europe, which he feels could be very dangerous. “I worry about another leg down in the economies causing social disruption because deleveragings can be very painful," Dalio says. “For example, Hitler came to power in 1933, which was the depth of the Great Depression, because of the social tension between the factions. So I think it very much is dependent on how the people work this through together and worry about the social elements.”
Comments (9)
  • Godwin's rule comes to finance. "Social tension between the factions." Thats a howl.
    21 Sep 2012, 08:46 PM Reply Like
  • Have you heard of the Golden Dawn party in Greece? Best to keep an eye on them.
    21 Sep 2012, 09:34 PM Reply Like
  • Ray Dalio is a very smart man, one of the few I totally respect, but it's really hard to imagine people enduring 10 to 15 years of depression, what's in it for them?
    21 Sep 2012, 10:56 PM Reply Like
  • I have to laugh when Hitler gets mentioned, as if Europe should all fear a new Hitler in Europe's southern tier. The reality is that the real Hitlet coul form an industrial and military collosus because germany had the technolgical and industrial know-how, as well as German discipline. In Southern Europe, any new "Hitler" would find that a "tank" is something that holds fermenting beverages, not a military weapon, and there's neither the technological nor industrial capability to form a military threat to anyone.

     

    So, if various good citizens want to rally around demagoguery, they'll likely be posing a threat only to themselves.
    21 Sep 2012, 11:43 PM Reply Like
  • They could become something akin to the Balkans. Which wouldn't be good news for Europe or the world.
    Or hordes of Greek, Spanish, Italian immigrants could flood to the more stable nations creating a strain on the economies of those nations in turn and depressing the salaries of workers due to high supply.
    22 Sep 2012, 04:42 AM Reply Like
  • It's time to push aside the bankers who took over the world's economy, and instead have it be run by people who have done something in their lives.
    People who created large innovative successful companies.
    Bankers really believe that they have a clue, but they don't - not Bernanke, nor Dimon, Diamond (the LIBOR guy), Gross, LaGuard, Geithner, nor hedge fund guys, nor Romney... not to mention career-politicians...

     

    Maybe time to try Cook, Page, Schultz, Bezos, Allison, Gates, Buffet or 50 others... any of them will do better, much better.
    People who are proven-brilliant and have created massive growth and jobs, not people who blabber about it.

     

    Sometimes I walk into my branch and talk to the kid-manager in his fancy suit and head full of opinions based on hallucinations, and think to my self - one day this guy could run the economy... unbelievable.
    This kid-banker already decides the fate of small businesses in the area, any of whom with so much more experience and know-how than this banker-kid. and it's not his money that gives him this power. It's my money.

     

    Something you wouldn't hear on Bloomberg TV, CNBC, the castles of the clueless Financial Sector.
    22 Sep 2012, 03:24 AM Reply Like
  • Hitler came to power and created the most dominant force on the earth. Too bad he was so stupid to waste it... How easy was it for Hitler if he had only listen to his Generals, take England first, then Russia. His power would be in place today. But then again I would have been drafted to fight him...
    22 Sep 2012, 08:13 AM Reply Like
  • Southern Europe and northern Europe will clash with Islam and expell north Africans out. That seems a likely trajectory. Oil dependency will diminish and then Europe will go for the kill.
    22 Sep 2012, 10:02 AM Reply Like
  • Southern Europe is not on track to repeat German like conquests - they are not Germany to begin with. Firmly entrenched democracy path in Europe points towards Yugoslavia fueled ethnic chaos/wars. After all, Spain actually consists of very different regions who were/are vying for independence - like Catalonia.
    23 Sep 2012, 01:55 AM Reply Like
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