The Terrifying Wall of Debt Haunting Bridgewater's Co-CIO
Bridgewater's co-chief investment officer, Bob Prince, warns about the long-term effects of a massive wealth shift from the public sector to the private sector, resulting in a significant increase in U.S. government debt to GDP ratio. Prince highlights the vulnerability of debt rollovers and gross issuance in the coming decades, with the U.S. issuing 25% of GDP in debt annually. He emphasizes the importance of paying attention to the geopolitical risks associated with foreign investors and central banks holding a significant portion of the debt. Additionally, Prince notes that the private-equity boom fueled by abundant free money is slowing down as interest rates rise.