Source: New York Post
“Former Goldman Sachs CEO Lloyd Blankfein has warned that the growing private credit market could lead to a financial crisis similar to the one in 2008, potentially affecting retail investors and the broader economy. In an interview on Bloomberg’s ‘Big Take’ podcast, the renowned moneyman said the $1.8 trillion private credit sector involves risks from hidden leverage, lack of liquidity and opaque assets. He compared the situation to the subprime mortgage crisis, noting that these investments are increasingly being offered to individual investors through retirement accounts. Blankein warned that he sees a possible financial crisis brewing in the private credit market. ‘We’re getting close to the end of the late stages of cycles on this, and we’re due for a kind of a reckoning,’ he said. He expressed concern that firms are promoting these products to retail clients just as risks are rising.” (03/03/26)