I'd be more concerned about private credit socializing losses and being bailed out, than bad AI loans leading to private credit problems which then lead to the bailout.

Private credit has a million other problems right now, like bad loans to auto parts dealers[1], iron traders[2], and so many more.

The issue is lack of due process in private credit. THAT is the huge @#$%ing problem.

[1] https://www.bloomberg.com/news/articles/2026-07-28/first-bra...

[2] https://www.bloomberg.com/news/articles/2026-07-31/vitol-car...