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SamuelTheThird

(586 posts) Fri Dec 12, 2025, 02:19 AM Dec 12

Why private credit is creating major concerns among economists

video (w transcript)

Investors and economists are warning about a piece of the financial system that could pose a risk that is potentially similar in ways to the housing crash that preceded the financial crisis in 2008. It’s part of what's been called the shadow banking system: the private credit market, an alternative type of lending to companies that doesn't involve traditional banks. Paul Solman explains.

https://www.pbs.org/newshour/show/why-private-credit-is-creating-major-concerns-among-economists

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Why private credit is creating major concerns among economists (Original Post) SamuelTheThird Dec 12 OP

Something similar happened in the 1920s with all the banks Deminpenn Dec 12 #1

No Bail Outs This Time modrepub Dec 12 #2

Don't worry. aocommunalpunch Dec 12 #3

Crossposting your other thread right here. Just because. yonder Dec 12 #4

I don't claim to have the remotest expertise on any of this SamuelTheThird Dec 12 #5

Deminpenn

(17,294 posts)

1. Something similar happened in the 1920s with all the banks

Reply to SamuelTheThird (Original post)

Fri Dec 12, 2025, 04:27 AM

Dec 12

lending to each other to buy stocks and create pools to manipulate the prices of stocks.

modrepub

(3,997 posts)

2. No Bail Outs This Time

Reply to SamuelTheThird (Original post)

Fri Dec 12, 2025, 05:26 AM

Dec 12

Put the companies in receivership, fire the people in charge after clawing back as many of their assets as possible, and break the big institutions up into smaller more manageable (and less powerful companies).

I hope Dems learned some lessons from 2008. Too big to fail was basically a moniker for rich people can’t be held accountable.