Private credit explodes 20 percent in a year, lending to junk firms with fake valuations. Next financial crisis brewing in Wall Street’s shadow system

Private Credit is where the next systemic financial risk is going to emerge from.

Just a complete scam industry.

Fake valuations. Pretending things are par when they are clearly not. Lending to garbage companies.

And… it’s all being financed by debt from commercial banks (since banks can’t lend like this anymore after 2008).

Private credit loans are up +20% Y/Y in dollar terms.

Commercial bank loans are up +4% Y/Y in dollar terms.

Whenever credit grows too fast, too freely, disasters always inevitably end up happening.

Private credit will be no different.

And we’ve let it become the Wild West.

We have learned nothing.