1283 Now its Morgan Stanley...

12 Mar 2026Morgan Stanley’s North Haven private income fund is facing significant withdrawals, similar to other funds like Cliffwater and BlackRock. These funds are denying most redemptions, citing contractual obligations, but this is exacerbating the problem and causing investors to seek exits. The situation is reminiscent of the 2008 financial crisis, with concerns about liquidity issues and the potential for asset sales.JP Morgan’s recent actions have restricted lending, leading to tighter money flow and potential economic issues reminiscent of 2007-2008. The current oil price shock, exacerbated by the Iranian conflict, is further straining the global economy, impacting business margins and potentially leading to job losses. Despite government efforts to release oil reserves, prices remain high, raising concerns about a potential economic downturn similar to the Great Recession.The text draws parallels between the current economic situation and the 2008 financial crisis, highlighting the potential for similar negative outcomes. It emphasises the risks posed by the shadow banking crisis, rising unemployment, and the possibility of an oil shock, all exacerbated by central bankers’ focus on inflation expectations. The author warns that the fallout from these issues will not be inflationary, contrary to central bankers’ beliefs.