Part 9/13:
The proliferation of private credit, off-balance-sheet financing, and less regulation increases opacity.
New assets like private equity, private credit, and innovative financial products—such as tokens or private funds—compound risks due to lack of transparency and regulation.
The Mechanics of Crisis Formation
Both experts agree that certain mechanics seem to be preordained: growth in debt outstripping money supply, reliance on “miracles” (technological or otherwise), and policy mistakes that tighten or loosen monetary conditions unjustifiably.