Lates News

Bridgewater Associates founder Ray Dalio warned that although Moody's downgraded the US sovereign credit rating, "you should know that credit ratings underestimate credit risk because they only assess the risk of the government defaulting on its debt ... They have not considered the bigger risk that heavily indebted countries will print money to repay their debts, leading to bond holders incurring losses due to the devaluation of the funds (rather than a decrease in the quantity of funds) ... In other words, for those who care about the value of funds, the risk of US government debt is greater than what rating agencies convey."