Credit Stress Is Back: What Happens When Markets Stop Clearing?

Credit stress is beginning to reappear in parts of the economy—especially in private credit markets where institutional capital has surged in recent years.In this episode of Exploring Prosperity, I sit down with veteran distressed real estate investor Bill Landis, co-Founder and Managing Partner of Raith Capital Partners, to break down what actually happens when markets stop clearing. We explore how distressed capital restores liquidity, how assets transition into stronger hands, and why this process becomes essential when traditional lenders pull back.If the current strains in credit markets continue to build, understanding this overlooked part of the financial system may be key to understanding what happens next.Topics include:* Early signs of stress in private credit markets* How distressed investors provide liquidity* What happens when financing disappears* Why long periods of calm create hidden risks* What a true credit cycle looks likeSubscribe for more conversations on markets, macroeconomics, and what drives long-term prosperity.Read about this episode: https://open.substack.com/pub/robertd...Thank you very much to our sponsors:Truflation: BUY Truflation products/services and save 10% using code BOBDEW10. Learn about what prices are actually doing by going to https://truflation.com/Foundation: Protect your Bitcoin using the latest off-line technology with easy-to-use Passport. Their next product, Passport Prime will protect all passwords off-line with even-better technology. https://foundation.xyz/River Financial: If not cold storage for your Bitcoin, I’d highly recommend River for buying and holding- River is engineered to protect your Bitcoin over the long run. Use this link for discounts: https://river.com/signup?r=T7GGAF7GTimestamps:00:05 – Introduction: Why Credit Stress Is Reappearing01:05 – Are Cracks Forming in Private Credit Markets?02:45 – The Hidden Risk: Liquidity Mismatches & Redemptions04:15 – How Credit Stress Spreads Across Markets05:45 – Mini-Crises vs Major Crises (Post-2008 Reality)07:30 – The “Medicated Economy”: Government Backstops Explained09:00 – What Distressed Investors Actually Do12:00 – How to Invest When There Is No Distress16:00 – Finding Opportunity: Housing, Industrial, and Demographics20:00 – Institutional Capital: Stabilizer or Distortion?24:30 – How Government Intervention Restores Liquidity30:30 – Why Real Distress Has Been Scarce (Even After Rate Hikes)33:30 – Where the Edge Comes From in Real Estate Investing38:30 – New Opportunities: AI, Data Centers, and Mispriced Assets43:30 – Case Study: San Francisco Real Estate Recovery49:30 – The State of Distressed Investing Today56:00 – Macro Risks Ahead: Oil, Debt, and the Next Downturn This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit robertdewey3.substack.com/subscribe