Ray Dalio

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.

You're holding all these financial assets.

What is the value of a financial asset?

It has no intrinsic value.

Its only value is what it can buy.

But there are many, many more financial assets out there, the most financial assets out there that there's ever been relative to the value of stuff to buy.

There's too many claims out there.

It's like musical chairs.

If everybody says, oh, wait a second, let me get my stuff.

Let me convert my debt assets.