Ray Dalio of bridgewater associates photoVery rare interview with Ray Dalio, founder of Bridgewater Associates LP. Bridgewater  has over $120b aum. The flagship fund has returned ~18% annually over the past 18 years, 45% last year, and 25% ytd.

In 2007, Dalio predicted that the housing-and-lending boom would end badly. Later that year, he warned the Bush Administration that many of the world’s largest banks were on the verge of insolvency.

Now Dalio is very bearish on the euro-zone.

Ray Dalio says some Euro countries will default on their debt or go into recession, and that countries like China and India will be the next world leaders.

“We worry about Europe not being able to solve its problems,”

Dalio discusses the European debt crisis, investment strategy and the global economy. He speaks with Erik Schatzker at the Bloomberg Markets 50 Summit in New York.

Below is the full 23 minute video followed by the transcript in scribd format:

Ray Dalio Bloomberg 50 Sept 15 2011 Transcript