{"id":576454,"date":"2026-07-31T02:18:43","date_gmt":"2026-07-31T02:18:43","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/576454\/"},"modified":"2026-07-31T02:18:43","modified_gmt":"2026-07-31T02:18:43","slug":"man-who-predicted-2008-financial-crash-has-worrying-new-ai-prediction-for-the-future","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/576454\/","title":{"rendered":"Man who predicted 2008 financial crash has worrying new AI prediction for the future"},"content":{"rendered":"

The man who predicted the 2008 financial crisis warns that AI will eventually trigger a similar collapse.<\/p>\n

Ray Dalio, the American<\/a> billionaire investor and philanthropist, is the founder of Bridgewater Associates – the world\u2019s largest hedge fund.<\/p>\n

He started Bridgewater from his New York apartment in 1975 and turned it into a 150 billion dollar fund before his exit last year.<\/p>\n

During that time, Dalio predicted the 2008 financial crisis<\/a> by tracking the \u2018debt supercycle\u2019, a massive economic wave that peaks every 75 to 100 years.<\/p>\n

In a recent appearance on The Diary Of A CEO<\/a>, the 76-year-old made a bold prediction about how the \u2018AI bubble\u2019<\/a> is going to burst.<\/p>\n

Investors are going to \u2018lose money\u2019 because of AI\"(YouTube\/The(YouTube\/The Diary Of A CEO)<\/p>\n

\u201cI don’t want to jump to conclusions as much as I want to explain reasonings that leads to conclusions,\u201d he said.<\/p>\n

\u201cI’m at a stage in my life that I want to help people understand cause\/effect relationships.<\/p>\n

\u201cWhat they call a bubble is when the price goes up a lot and companies do very well, and then it collapses.<\/p>\n

\u201cThat has implications for the economy and for markets, like the 1929 bubble or the 2000 bubble, which was the dot-com bubble.<\/p>\n

\u201cDid the 1929 bubble bursting impact people? Yes, the Great Depression followed.\u201d<\/p>\n

\u2018Wealth is not the same as money\u2019\"(Getty(Getty Stock Images)<\/p>\n

Dalio, who is worth $15.4 billion according to Forbes<\/a>, referenced \u2018the dot-com bubble\u2019 in 2000 which people thought they \u2018can bet on that, I’m sure it’s going to be successful\u2019.<\/p>\n

\u201cThen they bet on it, sometimes they borrow money<\/a> to bet on it, and they lose sight of the fact that price of it matters, it goes up and up and it’s everybody’s thing,\u201d he continued.<\/p>\n

\u201cRight now we’re very excited about AI<\/a>, and we should be. It’s going to bring revolutionary changes. Then at the same time ‘I want to buy some of that’.\u201d<\/p>\n

Why Dalio thinks the AI bubble will burst<\/p>\n

Dalio urged people to not confuse \u2018this will change the world\u2019 with \u2018this investment can’t lose money\u2019.<\/p>\n

\u201cEverybody wants to invest in some of that and what they do is they don’t pay attention to the price,\u201d he added. \u201cThere’s a certain mechanics, people will borrow money.<\/p>\n

\u201cWealth is not the same as money. You see a lot of people getting wealthy, but you can’t spend the wealth \u2014 you have to sell the wealth to get money, because you can only spend money.<\/p>\n

\u201cWhat happens is when they need money for one reason or another, taxes change or interest rates go up and so they have to pay their debt service there is a pricking of the bubble so that what happens is it falls.<\/p>\n

\u201cWhen that happens, people lose money. When they start to lose money the process works in reverse.\u201d<\/p>\n

Dalio believes this is what happens during bubbles: people stop asking whether the price makes sense because they’re afraid of missing out.<\/p>\n","protected":false},"excerpt":{"rendered":"The man who predicted the 2008 financial crisis warns that AI will eventually trigger a similar collapse. Ray…\n","protected":false},"author":2,"featured_media":576455,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,80],"class_list":["post-576454","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/576454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=576454"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/576454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/576455"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=576454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=576454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=576454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}