Ray Dalio Discusses Major Financial Crises (Podcast)
Masters in Business
00:00
Is the Central Bankers Always Late to the Party?
The funny thing about markets is that they discount what they've experienced more than what's likely. And in addition, you come to the late part of the cycle, when there's not much capacity to grow as fast, but the markets continue to discount a fast growth rate. The irony is asset prices are higher and so why would asset prices be higher or credit spreads be lower when there's a lot more leverage in the price of everything is higher? Doesn't make sense, but that's where the bubble is. These are the good times it seems, right? Then you get the top and then bang, the next stop is depression.
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