Others have pointed out how PE has degraded the medical system. The debt crisis I referred to is the private credit crisis, though no doubt private equity has played a key lobbying role in creating our national debt crisis as well. Regarding private debt, Jeffrey Gundlach sums it up:
"'This is starting to show up to be the problem that I've been referencing… that private credit and private equity, frankly, is being borrowed from private equity. It's sold on a volatility argument, primarily," Gundlach added. "Maybe there's some excess return for your illiquidity that you can get, but it's largely a volatility argument.'
Illiquidity could turn paper losses into real ones, Gundlach cautioned, pointing to the kind of liquidity squeeze that worsened the 2008 financial crisis, when investors were unable to meet capital calls."
"'This is starting to show up to be the problem that I've been referencing… that private credit and private equity, frankly, is being borrowed from private equity. It's sold on a volatility argument, primarily," Gundlach added. "Maybe there's some excess return for your illiquidity that you can get, but it's largely a volatility argument.'
Illiquidity could turn paper losses into real ones, Gundlach cautioned, pointing to the kind of liquidity squeeze that worsened the 2008 financial crisis, when investors were unable to meet capital calls."
https://www.foxbusiness.com/markets/jeffrey-gundlach-says-cr...