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.