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Cramer: Bridgewater's Dalio Is 'Sage' of Euro-Zone Crisis

Ray Dalio is the "sage, not [Nouriel] Roubini, not [Meredith] Whitney. It's this fella," Jim Cramer said Thursday.

Ray Dalio, Founder, President & CIO at Bridgewater
Source: bwater.com
Ray Dalio, Founder, President & CIO at Bridgewater

The hedge fund titan is the founder, president and CIO of the world's biggest hedge fund, Bridgewater Associates, which manages $100 billion in global investments.

"Ray correctly points out that the Europeans did not use the short ban to raise, they didn't do anything [Treasury SecretaryTimothy] Geithner did," Cramer said. "So we have these banks, you don't really know what they own because there's absolutely very little clarity, and they don't have enough capital."

Dalio wrote in a newsletter to clients Wednesday: "As implausible as it seems, European policy makers never made provisions for the possibility that their banks and sovereigns would have debt problems even though this possibility was apparent for some time. They wouldn't have had to believe that it was likely in order to believe that it was possible and that it was appropriate to make provisions for this possibility. But they did not.

"As a result, they and we all lack clarity as to who will do what, and where the money will come from to handle sovereign and bank defaults at this late stage in the debt crisis. Further, it seems like there is not nearly enough time between now and running out of money to reach the necessary agreements to have a good Plan B. of the European Debt Crisis is the reason that there is no plan B."

Cramer said Dalio "has been right the whole darn way, and you may not know him but he's up huge because he put money where his mouth is."

"They may have a window from the ECB [European Central Bank] but in the end, if they even have to use it, we saw what happens," Cramer concluded.