Algebris CEO Says Ray Dalio's Short Strategy is a Losing One

The video discusses Ray Dalio's short position on Italian banks, arguing it may be a losing strategy. The speaker highlights the value in Italian MPLs, noting their significant market share and potential profitability as banks clean up balance sheets. The discussion covers the impact of interest rates on economic growth in Europe, suggesting that a shift from negative to zero rates by the VCB could significantly boost Italian banks' earnings. The conclusion is that shorting Italian banks over the next 12 to 18 months may not be wise.

What does the speaker suggest about the potential earnings upgrade for Italian banks?

Why does the speaker believe that shorting Italian banks will be a losing strategy?