Latest / Economics Matters with Laurence Kotlikoff
The Illiquid Jenga Tower: Inside the Private Credit Timebomb Nobody's Talking About
What if the passive investing revolution (the idea that just buying the index and holding is the smartest thing most people can do) has quietly turned into something that no longer resembles the efficient market it was designed to track?
Every month, $33 billion flows automatically from 401(k) contributions into U.S. equity index funds. That money doesn't stop to ask whether Nvidia is fairly valued. It doesn't check whether 50% of the S&P 500 being tied to AI makes sense. It just buys, systematically and relentlessly, concentrating more and more capital into fewer and fewer companies — and in…
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