Dalio Sees ‘Very Difficult Period’ in 2012, New Yorker Reports

Ray Dalio, founder of Bridgewater Associates LP, said he expects “another very difficult period” for financial markets next year or in early 2013 as governments struggle to reduce their debt, the New Yorker reported, citing an interview with the hedge-fund manager.

The U.S. will eventually print more money to devalue its currency, which would hurt its bond markets, Dalio said, according to the New Yorker. Countries in the euro zone don’t have that option and will undergo “classic depressions,” he said, according to the magazine.

Dalio told the magazine Greece’s deal to avoid an immediate default didn’t change his view.

“People concentrate on the particular thing of the moment, and they forget the larger underlying forces,” he was quoted as saying. “That’s what got us into the debt crisis. It’s just today, today.”

To contact the reporter on this story: Laura Keeley in Boston at lkeeley1@bloomberg.net.

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net.

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