Bank of England warns U.S. credit markets are showing echoes of the 2008 crisis.

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Andrew Bailey has said the crisis in the $3tn shadow banking industry has echoes of 2008, in comments that will fuel concerns about a looming crash.

The Governor of the Bank of England said private credit lenders were engaged in the same kind of financial engineering as banks were in the run up to the global financial crisis.

Speaking to the House of Lords financial services regulation committee, Mr Bailey said he was beginning to see “what used to be called slicing and dicing and tranching of loan structures”.

“If you were involved before the financial crisis or during it, alarm bells start going off at that point,” he said.

https://finance.yahoo.com/news/bailey-shadow-banking-crisis-echoes-163710408.html

2007 Credit Risk never vanished.

It migrated into an ever bigger Credit Monster today!

The size of the risk today is largerly unknow as it is hidden in the Shadow Bank system.

In 2007, it was transparent and openly reported in the Balance Sheets of Banks. Today it is burried in less regulated institutions providing credit.

However, indications suggest that the Credit Risk today is bigger than in 2007. More opaque, higher leveraged and largely unregulated.

And the Financial Bubble is certainly bigger. Same are Debt Levels.

This Credit risk is the untill now unknown pin to the “Everything Bubble” – and recent developments in private credit institutions suggest we may see it develop sooner rather than later.

The largest Recession and Bear Market since 1930s awaits

https://www.bloomberg.com/news/articles/2025-10-22/subprime-lender-primalend-enters-bankruptcy-after-bond-default

September/October 2019 all over again. What catastrophe will conveniently come along this time to kick off massive amounts of (not)QE?