I asked AI slop if Private Equity / Private Credit are similar to the GFC and it said yes, they turned all those debts into "collateralized loan obligations" with all sorts of tranches and crap like that, and sold it to investors.

So I asked it if someone could actually look into them and see what's going on, like Michael Burry did in the MBS products in The Big Short.
It said no. Not even institutional investors who allocate billions know what's in them. It's all opaque and "mark to model" i.e. they decide the value.
It's a $2 trillion industry and if you look underneath it could be a 47% distressed LBO debt from a bunch of small companies in Ohio. No one knows.

That explains the big push I've seen recently to sell this crap to retail. They want baggies.