Ray Dalio

because, you know, money's free.

So companies borrow and buy stuff, and individuals borrow and buy houses, because interest-only loans on the houses, I mean, like, okay, I can buy a house, I can buy an apartment.

And so, but that creates the imbalance where it's terrible to be a lender

and a creditor.

And it's good to be a borrower and do that.

So that imbalance takes place.

It produces inflation.

And then when it produces inflation and so on, and then you say, I don't want to own these things anymore.

And also, the Federal Reserve says, I better fight inflation.

They change things.

And so by raising interest rates to levels,

in which it goes from minus 1.7% in inflation index bonds to plus 1.7%, and it raises the short-term interest rates, real interest rates, much higher, then, lo and behold, all the people who did all those things

get hurt, okay?

They borrowed, they bought the bonds, they bought all of those things and all of those debt instruments, and also companies.

Look at the companies that are affected.

Because yields got so low, tech companies and others, those who have a dream, they don't have to necessarily make profits.

They're selling a dream and the money's gotta be invested.

And so you see all of that change radically when that tightening of monetary policy.

So now you sit there and have a loss.

So when you're looking at the big picture, you look at, you've got, think of it as all like banking.