Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

Stocks making the biggest moves midday: MP, DAL, KLG, HTZ

July 10, 2025

Revolut adds products in US., China and the UK | PaymentsSource

July 10, 2025

Mortgage Digest: RBC expects no further BoC rate cuts

July 10, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Finance News»Ray Dalio says to fear the bond market as deficit becomes critical
Finance News

Ray Dalio says to fear the bond market as deficit becomes critical

May 25, 2025No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Ray Dalio says to fear the bond market as deficit becomes critical
Share
Facebook Twitter LinkedIn Pinterest Email

Ray Dalio, founder of Bridgewater Associates LP, speaks during the Greenwich Economic Forum in Greenwich, Connecticut, US, on Tuesday, Oct. 3, 2023.

Bloomberg | Bloomberg | Getty Images

Billionaire investor Ray Dalio on Thursday sounded another alarm on soaring U.S. debt and deficits, saying it should make investors fearful of the government bond market.

“I think we should be afraid of the bond market,” Dalio said at an event for the Paley Media Council in New York. “It’s like … I’m a doctor, and I’m looking at the patient, and I’ve said, you’re having this accumulation, and I can tell you that this is very, very serious, and I can’t tell you the exact time. I would say that if we’re really looking over the next three years, to give or take a year or two, that we’re in that type of a critical, critical situation.”

The founder of Bridgewater Associates, one of the world’s largest hedge funds, has warned about the ballooning U.S. deficit for years. Recently, investors have begun demanding lower prices to buy the bonds that cover the government’s massive budget deficits, pushing up yields on the debt. Rising worries about the fiscal situation last week triggered a high-profile credit rating downgrade from Moody’s.

The yield on the 30-year Treasury yield on Thursday traded at levels not seen since 2023, around 5.14%.

Rising financing costs along with continued spending growth and declining tax receipts have combined to send deficits spiraling, pushing the national debt past the $36 trillion mark. In 2024, the government spent more on interest payments than any other outlay other than Social Security, defense and health care.

See also  The 2025 renter's market won't last economists say

“We will have a deficit of about 6.5% of GDP — that that is more than the market can bear,” Dalio said.

Dalio said he’s not hopeful politicians would be able to reconcile their differences and lessen the country’s debt load. In a party-line vote early Thursday, House members approved legislation that lowers taxes and adds military spending. The bill — which now goes to the Senate — could increase the U.S. government’s debt by trillions and widen the deficit at a time when fears of a flare-up in inflation due higher tariffs are already weighing on bond prices and boosting yields.

“I’m not optimistic. I have to be realistic,” Dalio said. “I think it’s the essence of the challenge of our country that anything related to bipartisanship and getting over political hurdles … essentially means ‘give me more,’ which leads to these deficits.”

Don’t miss these insights from CNBC PRO

Source link

bond Critical Dalio deficit fear Market Ray
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleThe 11 Best Robo-Advisors of 2025
Next Article Investing in emerging technologies in 2024

Related Posts

Stocks making the biggest moves midday: MP, DAL, KLG, HTZ

July 10, 2025

Trump’s ‘big beautiful bill’ cuts SNAP for millions of families: Report

July 10, 2025

Altman, Iger and Cook arrive at ‘summer camp for billionaires’

July 10, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Money market account vs. money market fund: Differences

May 23, 2025

How To Budget As A Gig Worker — 8 Tips To Manage Your Money

February 28, 2025

Parents are not confident they can teach kids about investing

November 11, 2024
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

Stocks making the biggest moves midday: MP, DAL, KLG, HTZ

July 10, 2025

Revolut adds products in US., China and the UK | PaymentsSource

July 10, 2025

Mortgage Digest: RBC expects no further BoC rate cuts

July 10, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.