Ray Dalio warns of "disastrous financial collapse" over debt-ceiling fight.

Billionaire investor Ray Dalio has warned that the US government's lack of effective restraint on spending could lead to a "disastrous financial collapse" in the future. While he doesn't expect the current debt-ceiling debate to lead to a default, he believes that any agreement is unlikely to deal with the "big issues" in a substantive way and won't make a real commitment to cutting the deficit in future years. Dalio argues that continuing along the same path isn't sustainable and will eventually make it impossible to pay lender-creditors a high enough real interest rate without having that rate too high for the borrower-debtors to service their debts.