What Billionaire Ray Dalio Gets Wrong About Money

Billionaire hedge fund manager Ray Dalio’s half-hour video animation How the Economic Machine Works has gotten more than half a million hits on YouTube since it went live in September, which is pretty good for a piece with no kittens. It’s a clear description of how over-borrowing leads to booms and busts. According to the New York Times, former Treasury Secretary Henry Paulson has been sending the link to friends, and former U.S. Federal Reserve Chairman Paul Volcker is a fan.

But the founder of Bridgewater Associates gets one thing wrong—not once but repeatedly—and it leads him to a wrong conclusion about how the economy can recover from busts.