Excess Returns · Thursday, September 3, 2026
Ben Hunt outlines four significant problems that he believes will make the next few months challenging for markets. These include issues within the shadow banking system, crowding out effects from government and AI capital needs, rising interest rates, and a stretched consumer.
“And that's why I think the next couple of months are going to be so fraught for markets.”
“So the first big problem that is now on the scene is fraud in unanticipated losses in the insure-funded shadow banking system.”
“Issue number two. Both the US government, Japan, the UK, the EU, every government in the world needs trillions in capital to fund their deficits.”
“Catalyst number four. Is that the consumer is stretched again, not just stretched, but in trouble again.”