So let me get this straight: banks stopped lending private credit stepped in private equity added leverage on top everyone enjoyed the 9% yields rates went up companies can’t pay investors rush for the exit and suddenly only 54% can withdraw.Totally different from every other financial bubble in history. Absolutely unique
>>61987325I blame the investors on this one. They invested in funds that invested in illiquid assets and expected to get all their money back right away
>>61987325What is to be done about them?
>>61987325Jews will miraculously get all of their money out including returnsGoyim will be stuck holding the bag
>>61987325The problem is that the people they gave loans to are all going bust due to fake economy so the value of the funds are getting wiped out, this is causing investors to panic redeem, but it's not a stock, there is no money there until the borrowers pay the loans back (which they won't).
Is it even real or a nothingburger? People have been saying this is going to blow up for 5 years now
>>61987412>Is it even real or a nothingburger? People have been saying this is going to blow up for 5 years nowToo many retards have been in private investments for a decade now due to the accredited investor rules not changing for 40 fucking years. The $1 million dollar portfolio rule should now be closer to a $4 million dollar rule. Giving her midwit with 1 mil access to private markets when they don't understand how illiquid they are or how they even work was a fucking mistake. Same thing with giving retail traders access to the commodities futures market. Too much dumb money in the system.I think the private markets will continue to function fine, but every retard trying to make short term "investments" here will get washed in the short term.
>>61987426A big reason why private credit was allowed to grow to this level is because over-regulation has made traditional bank lending too onerous for the average borrower. Private credit provided an easier outlet for people to access credit; but the natural consequence to the overall market is a credit sector with less transparency and more risk. The private credit market is a house of cards that's stacked with debt on top of debt as it's been the primary vector of capital for PE acquisitions; a crash is certain to happen in the near future.