I'd be more concerned about private credit socializing losses and being bailed out, than bad AI loans leading to private credit problems which then lead to the bailout.
Private credit has a million other problems right now, like bad loans to auto parts dealers[1], iron traders[2], and so many more.
The issue is lack of due process in private credit. THAT is the huge @#$%ing problem.
I'd be more concerned about private credit socializing losses and being bailed out, than bad AI loans leading to private credit problems which then lead to the bailout.
Private credit has a million other problems right now, like bad loans to auto parts dealers[1], iron traders[2], and so many more.
The issue is lack of due process in private credit. THAT is the huge @#$%ing problem.
[1] https://www.bloomberg.com/news/articles/2026-07-28/first-bra...
[2] https://www.bloomberg.com/news/articles/2026-07-31/vitol-car...
Thanks to deregulation. If we have another 2008-like crisis, will the people demand that their reps make serious reforms?