KaiserKitty on Nostr: What a riot. So investors got mad that after 2008 banks couldn’t loan as much to ...

What a riot. So investors got mad that after 2008 banks couldn’t loan as much to prevent bank runs, so they rushed to non-regulated private lenders. These private lenders are becoming insolvent, and people can’t pull their money out because it’s being lent to AI companies.

So investors want to go back to normal banks but won’t unless the government lets banks over-leverage themselves more. Creating the exact same issue people are leaving private credit for.