Open letter responding to a series of essays by Ray Dalio, part 2
Dear Ray,
Keeping rates too low for too long in the current cycle brought massive capital misallocation.
It resulted in the financialization of a significant part of the business world, in the US and elsewhere.
The rules now reward management, not for generating revenue, but to drive up the price of the share price, thus making their options and stock grants more valuable.
Artificially low rates created the housing bubble, exacerbated by regulatory failure and reinforced by a morally bankrupt financial system.
John Mauldin 14 June 2019
Ray Dalio, founder of Bridgewater Associates, and MMT
Keeping rates too low for too long in the current cycle brought massive capital misallocation.
It resulted in the financialization of a significant part of the business world, in the US and elsewhere.
The rules now reward management, not for generating revenue, but to drive up the price of the share price, thus making their options and stock grants more valuable.
Artificially low rates created the housing bubble, exacerbated by regulatory failure and reinforced by a morally bankrupt financial system.
John Mauldin 14 June 2019
Ray Dalio, founder of Bridgewater Associates, and MMT
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