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let me let me push on that a little bit so you know we've seen big growth there we've seen so the Apollo the blackstones getting into private credit we've seen the business development companies serving the midmarket two things I mean one is when you look at those or those uh institutions they are much more Equity funded so have more long-term capital backing them so in some sense we don't see that Arbitrage I think that you were talking about right they have much more Equity based funding no no they don't you know some do and some don't so the insurance companies don't m a private credit fund does you know they might be leveraged you know two to one or something like that but what you what you guys don't see is there are multiple layers of Leverage in there too they borrow against those loans they have subscription lines over here they pre-fund some of these other Investments uh literally like you don't all see all that stuff that takes place but but yeah in some cases they're safer like an insurance company in fact does have you know if you're an annity company you may have longer dated liabilities and you have better liability matching than a bank might have so but you have to ask what and that's fine so some of them are and they're quite good at what they do so I'm not criticizing that but is that what you want it 80% of the mortgage business outside and I'll tell you another consequence which I'd love you guys to study who looks at public Capital markets here is there a professor who does public Capital markets we've gone from 8,000 public companies in like the early 90s to 4,000 today the 8,000 should have gone to 16,000 okay private Equity gone from like a thousand to 10,000 and and I'm not again this is not a St about against for against private the question is is that a good thing is a public market transparency good is heavy marketto Market capital good and why did people leave and if you analyze why people left it was litigation regulation the compensation schemes boards have to cross tees and Dot eyes uh uh it's the SEC it's it's frivolous shareholder meetings it's uh you know ngos trying to get your company to do all these various things there all people leave I would leave the public market if I could is is that is but is that what you want I think it's a bad idea for America you know and so I think people should answer those questions before they say I'm just going toose more things on them you know because remember these public markets are very transparent and we have the best financial system in the world including private credit and private Equity but if you but but I would go back to the thing if you're going to regulate certain things regulate the product the same I would be more in that mode you know and including inside insurance companies so you don't so you have the market competing but it's not Arbitrage it's a great question you raised around the size of private equity and private debt and and sort of the growth in that industry and and a good question to come back to I before I want to turn to um another set of regulations um about consumer protection uh we had uh Rohit Chopra here last week he's former head of the uh Consumer Financial Protection Bureau I guess it's fair to say you aren't exactly buddies um but can you talk a little bit about you know do we need a regulator who's watching out for you know those consumers who are less financially sophisticated uh to prevent you know charging excessive or hidden fees to Consumers and so forth yeah of course on that of course you need proper consumer protection and again it goes back to how you design it so and then uh someone made a statement recently well if they don't have it there the banks would have consum we have consumer protection in the OCC we have consumer protection in the FED when they did the cfpb it was supposed to to one place is stayed in all three we also get it effectively from the SEC we get it from a whole bunch of other people sometimes from the doj of course you want prop consumer protection and I have no problem roit I think he's very smart I think he's arrogant I think that that he's one of those guys I told him that was a major intellectual flaw is when you use your brain to justify what you already think and that's what he does he came with a mission he and some of the stuff he knew wasn't exactly right but kind of like that'll show them you know when he didn't mind about un like some other people didn't mind being sued not everything you did was bad I'm not against it you know but this be very thoughtful stuff about what is he trying to accomplish again and so some of his stuff was misguided but you know I actually respected him for his intellect if you like the video do like comment share and subscribe
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