#362 Chris Whalen: DOJ Drops Powell Probe — "Trump Could Be Attacking Warsh By Thanksgiving," Stagflation Is the Base Case, The Real Private Credit Risk, & Why Distressed Real Estate Is The Next Trade

In this episode of The Wrap, Chris Whalen breaks down what's really driving the rally, why the inflationary impact of the Iran war will stay with us through the end of 2026, and why the Fed's hands are essentially tied regardless of who sits in the chair. Chris also digs into Q1 bank earnings — what the numbers are really saying about credit risk, why most banks are still refusing to disclose their private credit exposures, and why he believes the debt in these deals will ultimately be converted to equity — with retail and institutional investors left holding the bag. Plus: commercial real estate as a long-term drag on cities, the New York pied-à-terre tax as political theater, gold and silver ETF picks, and why Chris says the U.S. equity market would be "comfortable with the devil by lunchtime."

Thank you to our partners at Goldco. Get your free 2026 Gold & Silver Kit at https://goldco.com/thewrap or call 855-573-0817

Links: The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/ The Wrap: https://www.theinstitutionalriskanalyst.com/post/theira837Inflated book (2nd edition): https://www.barnesandnoble.com/w/inflated-r-christopher-whalen/1146303673Twitter/X: https://twitter.com/rcwhalen "Homework" from Chris :) https://shanakaanslemperera.substack.com/p/the-reserve-barbell

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

Timestamps:
0:00 Intro
0:27 Breaking news — DOJ drops Powell probe, Chris reacts
2:03 Chris's assessment of Powell — "Mediocre"
2:18 "The burning tire of home price affordability"
3:58 "He could be attacking Warsh by Thanksgiving"
5:49 Does Warsh come in as a hawk?
9:45 Main episode begins
10:15 Middle East/Iran update
12:56 Stagflation is the base case
15:00 Truflation viewer question
16:50 Spirit Airlines bailout
20:32 Kevin Warsh hearing circus
23:29 VantageScore — "election year press release"
27:15 D. Ricardo's letter on private credit
29:00 NVIDIA — "I would not be a buyer"
30:54 The generational experience gap
31:49 "You think we may get a crisis this year?"
32:45 Share repurchases — "funded with debt"
34:06 Gold homework — Reserve Barbell
37:07 The passive bid
38:00 Viewer Q — community banks
40:11 Viewer Q — Did Chris lock in his mortgage?
42:11 FOMC next week
42:30 "Distressed real estate is the next trade"