A Wall of Debt Rolling Over Is What Scaring the Largest Hedge Fund in the World

Tuesday’s market outlook is bleak as oil dips and stock futures wane in reaction to China’s weak export data. Echoing these concerns, Bridgewater’s Bob Prince warns of the enduring burden of the U.S. government’s soaring debt, which poses long-term rollover risks and global vulnerability. The debt-fueled boom in private equity is hitting a wall, with rising interest rates causing liquidity crunches and a slowdown in transactions. Citigroup analysts underscore the danger of testing the limits of government debt, implying that such a crisis could trigger a worldwide retreat from risk assets.