Steve Eisman

That's part one.

Part two is that we have not had a credit cycle in the United States since the great financial crisis.

And that has bred a tremendous amount of complacency amongst lenders.

And we are overdue for a credit cycle.

And traditionally, if you know anything about lending history, whenever there is a credit cycle, the place that it takes place almost 100% of the time is the asset class that grew the most.

So in the great financial crisis, the asset class that grew the most was subprime mortgages, and that blew up the most.

Um, since the great financial crisis, the banks have not had much loan growth at all.

Um, all the loan growth has really been in private credit.

Private credit 10 years ago was a 300 billion per year market.

And now it's close to a 2 trillion per year market.

Wow.

So you're starting to see cracks in credit.

Um,

You mentioned that this KKR fund got downgraded by Moody's.

By the way, the rating agencies are always very slow.

If the rating agencies are downgrading it, you know it's bad.

That's a real problem.

Now it's a problem.

Because if even the rating agencies admit there's a problem, problem.

Yes.