Rebel Capitalist News Jeff Gundlach Just Gave Dire WARNING About Private Credit (More Cockroaches)
19 snips
Nov 20, 2025 Jeff Gundlach issues a stark warning about the dangers of private credit growth, likening it to the 2006 subprime crisis. He advocates for significant cash allocations as market froth continues to escalate. The alarming fallout from a major fund merger raises questions about liquidity and investor confidence. Meanwhile, Gundlach critiques AI hype, linking it to questionable private-credit investments. The overall economic landscape is described as unhealthy, with signs of consumer weakness reflected in Target’s declining sales.
AI Snips
Chapters
Transcript
Episode notes
Heavy Cash Positions Signal Caution
- Jeff Gundlach and Warren Buffett are both holding large cash positions as a defensive stance against an overheated market.
- George Gammon highlights this alignment as a warning that speculative excess, especially in AI stocks, may be due for a correction.
Buffett Prefers T-Bills Over Buybacks
- George notes Warren Buffett holds a record cash share and prefers T-bills to buying back his own stock right now.
- He uses Buffett's behavior as an implied market signal to be cautious.
Private Credit Echoes 2006 Risks
- Gundlach warns private credit has the same trappings as subprime mortgage repackaging from 2006.
- Gammon connects private credit stress to recent fund troubles and broader shadow banking fragilities.