Larry McDonald

And now that's spilling over to the banks.

Like look at the financials this year.

The financials are underperforming the S&P by the most since almost Lehman.

It's right.

Well, now when you say that, you're 100% right around.

Like if you look at a normal company will have private credit sitting above private equity.

The good news for private equity is there is a good chunk of it that is not levered.

There's some chunk of it.

This is where somebody has to do the math.

So in other words-

Let's just say you have a trillion dollars of private equity.

I'd say at least 40% of that, those companies are pretty levered, maybe 60%.

There'll be some slug of that that's not really levered.

So yeah, on the 60% of that just trillion dollar slice, 65%, yeah, there's private credits above and it's just going to cram down the value of private equity.

And that's why you're seeing KKR, Blackstone,

All these companies are down.

40, 50, 60% on the, on the threat equity side.

Well, when I sat down, so I sat down with some great people in the book.

I sat down with David Tepper, Einhorn, Hall of Famer, David, Greenlight Capital.

But I was in Omaha with Charlie Munger.