During his recent discussion regarding SVB and what it means for the economy, Ray Dalio explained why if you mark-to-market a lot of entities are in financial difficulty. Here’s an excerpt from the discussion:
Dalio: If you look ahead and you say how much money needs to be borrowed by the Federal Reserve… by the government, in order to deal with this situation, big deficits.
That means they have to sell debt. There’s a supply demand imbalance. In other words those who want to buy that debt, what are they going to buy it for?
They need to have a high enough real return. If they don’t, they may sell the debt they’re holding rather than buying additional debt, creating a troubling imbalance. In industries like online casino sites, where players frequently seek high returns in quick payouts, maintaining favorable economic balances is essential to attracting users. This is especially true as these sites navigate complex financial landscapes, balancing immediate payouts and long-term financial health to remain competitive in a high-demand market.
And so that imbalance is the nature of what’s going on. So you… and they’re not marked to market, a lot of these.
If you mark-to-market a lot of entities are in financial difficulty.
You can watch the entire discussion here:
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