LIVE: Ray Dalio Is Speaking At The DealBook Conference

Ray Dalio, who runs hedge fund behemoth Bridgewater Associates, is speaking at the DealBook Conference in midtown Manhattan right now.

Dalio, who is one of the most successful hedge fund managers ever, said that he would not invest in Bitcoins right now.

He added that he would have to understand it better. He said there's a "a lot of merit" behind it.

"That's a whole conversation," Dalio said.

Dalio, who recently published a great presentation called "How The Economic Machine Works," began the conversation saying that he's worried about future failures.

He began by getting into economics.

The average retailer investor gets scared so they have a pattern of sell. A pension would rebalance, he said.

Andrew Ross Sorkin asked him where he thinks we are now. He asked if the Fed printing money makes sense.

"It's working with decreasing effect. It will work with even less effect."

Sorkin asked him what happens as a result.

"I'd like to emphasize the machine... What I'm saying is the Federal Reserve...They normally lower interest rates...Now the Federal Reserve can only produce the purchase of financial assets. That creates a wealth effect...As we create a wealth effect, it's concentrated in the hands of those who have those financial assets...As a result the spending in the stores, it has a diminishing effect..."

He explained that the Federal Reserve has done a fantastic job providing liquidity post financial crisis.

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