Steve Eisman

And some of them may not be refinanced at all because people are literally freaking out about the impact of AI on software, as I'm sure you've told your viewers many, many times, and I've told mine.

Yes.

So...

And then there was a piece of news today that I thought was very interesting, which was not in the direct lending world.

It was in the asset-backed world.

Barclays put out a press release.

I don't know if it was a press release or it was a Bloomberg story.

I think it was a Bloomberg story that Barclays has dramatically pulled back from making asset-backed loans today.

to small to medium-sized companies.

So it'll only make asset-backed loans to large corporates.

This is what happens at the beginning of a credit cycle.

The news gets bad, people start to worry about losses, underwriting standards start to tighten, certain borrowers are cut off, and lending gets tight.

Yes.

And when that happens,

more often than not, but not all the time, you go into a recession.

Private credit is now big enough, and it has been the entire growth engine of lending for the last 10 years, that if private credit starts to get very, very tight, that's going to hurt our economy a lot.

It's not going to be as bad as that.

Yeah.

Everybody's got to calm down.

I mean, we'll talk about that.