[From The Archives] Ray Dalio: It's A Depression, Not Recession

It’s not often that Ray Dalio, the owner and founder of Bridgewater Associates, the world’s largest hedge fund is wrong. However, Dalio is only human and occasionally he makes the wrong call.

During October 1992, an article titled Depression, Not Recession; That, Contends a Seasoned Observer, Is What We’re In, written by Ray Dalio was published within the pages Barron’s magazine.

The article argued that the US economy was already in a depression and economic growth would grind to a halt during the next few years. Additionally, Dalio warned that if the Federal Reserve continued to lower interest rates, without any meaningful improvement in the underlying economic fundamentals, growth would stop altogether, and deflation would set in.

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Luckily, Dalio's predictions turned...