Bridgewater: global economy is facing the threat of a self- reinforcing decline (BBG)

Bridgewater report, quoted by Bloomberg:

"European debt crisis has been poorly managed, bringing Europe closer to a "debt implosion" or a currency collapse." (...)

"The breadth of this slowdown creates a dangerous dynamic because, given the inter-connectedness of economies and capital flows, one country's decline tends to reinforce another's, making a self-reinforcing global decline more likely and a reversal more difficult to produce," (...)

"Europe is in the "most critical" stage of a global deleveraging process, as deteriorating finances in France and differences with Germany make it less likely that the region's strongest economies will pick up the tab to solve the region's debt crisis."

"the popular assumption that the Germans and the ECB will come through with money to make all of these debts good should not be taken for granted,"

"there are good reasons to doubt that the European bank and sovereign deleveragings will be prevented from progressing to the next stage in a disorderly way."

source: Bridgewater Sees 'Dangerous Dynamic' As Largest Economies Slow | Bloomberg