JPMorgan CEO Jamie Dimon explicitly compared the current lending environment to the 2005-2007 pre-crash era. He noted competitors are doing "dumb things" in lending. Reporter Kap Dority clarified that Dimon is specifically "calling out the Apollos, the Blue Owls" regarding private credit and lending occurring outside the regulated banking system. The private credit market lacks the transparency of public banks. Dimon argues that while banks mark assets to market, private credit firms hold loans at values (e.g., 90 cents) that may not reflect true stress (trading at 60 cents). If a "snowball effect" of selling begins, the illiquidity and opaque valuations in these firms could lead to a rapid repricing and loss of confidence. SHORT/AVOID. The "smart money" (Dimon) is signaling that the risk/reward in private credit has detached from reality. Private credit continues to grow AUM due to investor demand for yield, ignoring the underlying credit quality risks for longer than expected.