The Private Credit Trap: Next Financial Crisis?

The dark days of the great financial crisis are safely behind us. The system is fundamentally stronger than was back then, and the reckless lending practices of the past are no more. Well, no, not exactly.In the more shadowy corners of Wall Street, major banking institutions are loading up the exact same financial weapons that were used to bet against the housing market in 2008. This time, however, they are not targeting subprime mortgages, but rather a $3 trillion shadow banking system, where default rates ...