icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Global corporate losses from coronavirus to top $12 TRILLION – investor Ray Dalio

Global corporate losses from coronavirus to top $12 TRILLION – investor Ray Dalio
The economic damage from the Covid-19 outbreak will be unprecedented, according to the head of one of the world’s largest hedge funds Ray Dalio, who says global corporate losses from the epidemic will amount to $12 trillion.

“What’s happening has not happened in our lifetime before ... What we have is a crisis,” Dalio told CNBC. “There will also be individuals who have very big losses... There’s a need for the government to spend more money, a lot more money... A lot of people are going to be broke.” Talking about US corporations he said they will lose as much as $4 trillion.

The founder of Bridgewater Associates explained that the US fiscal stimulus package should be $1.5 trillion to $2 trillion at a minimum, depending on the form of financial relief such as loan guarantees and credits.

Dalio said there’s an “inability of central banks to stimulate in a way that’s normal.” They have less capacity to ease monetary policies when interest rates have already hit the floor, he added.

Also on rt.com Trump signs ‘families first’ coronavirus act, with additional $1 trillion stimulus in the works

“We are now at a point where there will have to be a debt restructuring and a monetization of that. We’re living in a different world like the 1930s in which 1930s, 1932 you have a devaluation of the dollar. You have the printing of money.”
 
The White House has announced this week a $1 trillion stimulus package that could help soften the blow of a sudden recession. The funds will include direct payments or tax cuts and small business assistance. The Federal Reserve has also unveiled plans to pump an additional $1 trillion into the US economy through asset purchases and cut interest rates to zero.

For more stories on economy & finance visit RT's business section

Podcasts