Wall Street, Manhattan, New York.
Andrey Denisyuk | Moment | Getty Images
High-rolling investors are ADDICTED to the dangerous rush of private credit, IGNORING a ticking time bomb of debt that threatens to CRASH the global economy. While top financiers sound the alarm, reckless capital continues to flood this SHADOW banking system, building a mountain of hidden leverage that could make 2008 look like a minor blip.
The recent implosion of auto-parts maker First Brands Group was NOT an isolated incident but a HARBINGER of systemic rot. Jamie Dimon’s chilling warning of “cockroaches” hiding in plain sight is being PROVEN RIGHT as decades of easy money fuel increasingly aggressive and toxic debt structures. Ray Dalio echoes the panic, pointing to the crushing pressure of higher rates on over-leveraged private assets.
Yet, in a display of staggering greed and denial, the cash KEEPS POURING IN. Giants like KKR, TPG, and Neuberger Berman are raking in BILLIONS for new funds, exploiting investor desperation for yield. They are knowingly constructing the next catastrophic bubble while marketing it as “innovation.”
THE DEATH SPIRAL OF GREED
This isn’t investment; it’s a PONZI SCHEME propped up by a cynical narrative. Banks, strangled by post-2008 regulations, have willingly handed the lending reins to unregulated private funds—funds now operating with DANGEROUSLY LOOSE standards. The very institutions warning of peril, like JPMorgan, are simultaneously diving back into the market, exposing their HYPOCRISY.
Data reveals a horrifying reality: approximately 15% of borrowers can NO LONGER service their interest payments. This isn’t a “modest strain” but a debtors’ prison for corporations. Morningstar confirms credit profiles are deteriorating FAST. The so-called “structural demand” is nothing more than the financial system cannibalizing itself.
ASIA: THE NEXT DOMINO TO FALL
Promoters now tout Asia as a “conservative” safe haven, a blatant attempt to redirect the bubble. Claims of “less leverage” and “stronger covenants” are the same empty promises made before EVERY financial crisis. As capital desperately seeks the next frontier, this region is being set up for the SAME devastating collapse.
The elite are building their fortunes on a foundation of financial nitroglycerin, and the rest of us will pay the price when it detonates. The question is no longer IF, but HOW MANY lifetimes it will take to recover from the coming private credit reckoning.
Author: Kayitsi.com
