It’s no secret that a number of big-time hedge fund managers are really disappointed with the decisions policy makers have made in an attempt to bring the U.S. economy out of recession.
Take Citadel’s Ken Griffin, for example. He told the Chicago Tribune that he is giving money to the Koch brothers, Mitt Romney’s Super PAC, Restoring Our Future, and more Republican political organisations to the tune of over $2.8 million.
He thinks government intervention has gone too far.
From the Chicago Tribune:
“I spend way too much of my time thinking about politics these days because government is way too involved in financial markets these days,” he said in a rare interview.
Ray Dalio, founder of the world’s most successful hedge fund, Bridgewater Pure Alpha, would disagree. In a wide ranging interview with The Economist, Dalio called the American recovery “the most beautiful deleveraging yet seen.
From The Economist:
As America has gone through the necessary process of reducing its debt-to-income ratio since the financial crash of 2008, he (Dalio) reckons its policymakers have done well in mixing painful stuff like debt restructuring with injections of cash to keep demand growing. Europe’s deleveraging, by contrast, is “ugly”.
This is big.
Obama, Geithner, and Bernanke are constantly second-guessed for their actions after the crisis. And here Dalio is giving it a big thumbs up to the various actions that were undertaken: Generous bailouts, stimulus, a kitchen-sink approach from the Fed.
His point about Europe, and the awful job they’ve done, only highlights how badly US leaders could have done, but didn’t.