Which Mortgage REITs Chris Likes

In this episode of The Wrap, Chris Whalen says the private credit unwind is now spreading to consumer credit funds and warns that retirees and pension funds will feel the pain most — while the firms that sold these products face devastating reputational damage. On the Fed, he calls Trump's handling of Powell "truly incredible, almost like he wants to screw it up" and warns Powell could remain Fed Chair for three more years if Trump doesn't back down. He says the Fed is late, oil above $100 is not a monetary problem but a political one, and that if Trump puts Marines in the Persian Gulf it could effectively end his presidency. He's buying gold and silver on the dip and watching the K-shaped economy crack wider.

Thank you to our partners at Goldco. Get your free 2026 Gold & Silver Kit at https://goldco.com/thewrap

Links:    

The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/ 

Inflated book (2nd edition): https://www.barnesandnoble.com/w/inflated-r-christopher-whalen/1146303673

Twitter/X: https://twitter.com/rcwhalen    

Website: https://www.rcwhalen.com/   

Use the code TheWrap2026 for 25% off your first year of The Institutional Risk Analyst https://www.theinstitutionalriskanalyst.com/plans-pricing

Timestamps:

0:00 Introduction and welcome

0:52 - Consumer credit

3:16 - Big banks now offering ways to short private credit

4:53 - How private equity evolved into private credit — and why quality collapsed

7:25 - "Risk Concealed" — SPE loans, PIK structures and hidden bank exposure

9:26 - How do you know if YOU are exposed? You don't.

11:29 - "We're all exposed" — what bank disclosure actually tells you

13:12 - The opacity problem — loan by loan, you can't see it

13:58 - Will everyday investors feel this? Retirees and pension funds will

15:25 - The Fed — rates unchanged, Powell is staying

16:11 - Trump "almost like he wants to screw it up" — the Powell/Warsh debacle

19:06 - Powell could be Fed Chair for three more years — here's why

20:47 - Could Trump have gotten the rate cuts he wanted if he'd handled this differently?

21:50 - If Trump puts Marines in the Persian Gulf "that's the end of his presidency"

23:18 - All roads lead to inflation — and it's not monetary

25:19 - Is the Fed late? "Chronically late for the past 10 years"

26:27 - The K-shaped economy — the bottom half is already in recession

27:38 - Luxury hotels booming, economy hotels empty — the data tells the story

29:58 - Inflation and affordability will decide the midterms

30:29 - FHFA rolls back climate insurance rules — mostly a press release

31:13 - UWMC/TWO — a cash offer emerged, Whalen says Two Harbors goes to auction

33:43 - Viewer Mail: AGNC and mortgage REITs — what to own for income

35:41 - Viewer Mail: Why is gold dropping? Whalen is buying the dip

37:15 - What Whalen is watching next week