Race To The Dung Heap

I thought crypto would be the catalyst for the next collapse, but private credit, subprime auto and commercial real estate give it a run for its money.

As I wrote just weeks ago, I believed (and still do) that any new market collapse could come at the hands of crypto and/or stablecoins, which have in many ways become an essentially unregulated $4 trillion slush-y money market fund reminiscent of 2008.

But watching the headlines coming out of commercial real estate, private credit and subprime auto over the last week or two — and I’m not certain we don’t have a new leader, or leaders, in the nationally televised Race To The Financial Dung Heap™.

Let’s try to make this case as clear and as simple as possible, with examples and charts for people with very short attention spans, like myself.