To reuse your analogy, I fear that the forest wasn't managed properly and that the coming fire will do a lot more damage than a controlled burn. And I have no idea when it's going to start nor how to fireproof my investments !
Regulations are what lead to private credit being what it is today. Post Dodd-Frank banks are unable to take on a lot of the lending risk with these style of transactions anymore which paved the way for asset managers to create the shadow banking system that exists today.
It's most certainly not the same. An asset manager going broke because they bought some bad loans is infinitely better off for the public at large than a bank becoming insolvent and depositors losing their money.
