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Private Equity Bubble

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Debt on Top of Debt: The $8 Trillion PE Bubble - Mauldin Economics
Excerpt:
That old private equity model is now mostly extinct. In its place, my good friend Jared Dillian sees an $8 trillion bubble, built on massive layers of debt across 17,000 private equity firms. He says this bubble poses a systemic threat to the entire financial system, with the potential to implode in ways similar to what we experienced during the 2008 financial crisis.

 

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Tavi has a brief discussion on this PE Bubble on Crescat's Market Call at the 51:00 mark Crescat's Live Market Call (youtube.com)

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My Comment:  There's another big bubble in the basis trade.  Read more at Credit Bubble Bulletin : Weekly Commentary: Something of a Victory Lap Bloomberg Intelligence’s Brian Meehan was out Friday with timely research:   “Can Historic $1.1 Trillion Net Short Basis Trade Hold or Crack? Leveraged net shorts of Treasury futures have surged to a historic $1.1 trillion

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Here's more on the basis trade: Will $1 Trillion In Treasury Carry Trades Blow Up The Clearinghouses | ZeroHedge Excerpt: So what could go wrong? Well in the US, after the presidential election is out of the way, you could expect inflationary policies to be announced (higher minimum wage, more tariffs, more stimulus). This leads to inflation expectations rising. Physical treasuries