Scarlet Fu

He is president and managing partner of Chanos & Company.

He is here with us exclusively.

Good to see you again, Jim.

So you heard what the CEO of Barclays said about this idea of whether it's one bad actor or some aspect of circumstances that leads people in companies to behave a certain way.

What does your spidey sense tell you?

And how extreme is this current financial cycle?

So the stock market has barely blinked with all these blow-ups.

The credit market kind of dismissed them as idiosyncratic until Jamie Dimon warned about the prospect of more cockroaches.

And then that kind of got people's attention just a little bit here.

At what point does this become something that the credit market starts to panic over?

What I found really fascinating was that Jamie Dimon didn't really target private credit in his comments.

He kind of just made the comments generally.

Yet the industry got kind of defensive when he spoke up.

Are these firms justified in doing so?

I mean, you point out that they have promised these equity-like returns that raises questions about the economics of their business.

Yeah, to your point, private credit has kind of become the it girl of asset classes.

Everyone talks about it.

Every asset management firm wants to be able to offer.

Every bank seems to want to get in after missing out.

Exactly.