Kiyosaki: Private credit outflows could hasten U.S. crash

Robert Kiyosaki wrote on X that investor withdrawals from private credit funds could accelerate a U.S. financial crash, adding that “panic is spreading” and that “major big name banks and brand name financial institutions are in trouble.” He referenced analyst Jim Rickards' view that the United States may already be entering a “New Depression.” Kiyosaki did not include data or regulatory filings to support those claims.

Private credit consists of loans made by nonbank lenders, typically investment funds that lend directly to companies. These funds often offer higher returns in exchange for limited liquidity and less public reporting than traditional bank loans or public bonds. When many investors seek redemptions, managers can face pressure to sell illiquid assets or restrict withdrawals, which can deepen losses.

Stress in private credit markets is significant because investors are pulling capital and warned the trend could spread beyond niche funds to affect larger financial firms. Kiyosaki did not provide dates, figures or third-party verification for the scale of outflows or any direct impact on major banks.

In the same post, Kiyosaki said he plans to increase allocations to oil, silver, gold, Bitcoin and Ethereum. He wrote, “Always remember the golden rule of bank runs….money always runs somewhere. Your job is to figure out where the money running out of banks, businesses, and jobs….is running to.” He contrasted experienced investors who buy in downturns with newcomers who, he wrote, often panic and sell.

Since the global financial crisis, banks have reduced some types of lending and private credit has expanded as institutional investors sought higher yields. The sector now supplies a substantial portion of financing for many mid-sized companies. Limited liquidity and complex loan terms can leave the market vulnerable to rapid redemptions or mark-to-market losses if funding conditions tighten or economic conditions worsen.

Kiyosaki's post mirrors other public warnings that cite rising debt, higher interest rates and asset revaluations as sources of economic stress. He did not offer a timetable, risk estimates or independent verification for the assertions in his post.

As we reported earlier, former Lehman Brothers vice president Lawrence McDonald warned that credit stress is spreading across U.S. markets, citing roughly a dozen recent events in private credit-loans from fast-growing nonbank lenders-along with weakness tied to AI and software. He compared the pattern to 2007–2008, when early strains widened after being downplayed. He urged caution on bullish narratives and to watch cross-market signals, while JPMorgan CEO Jamie Dimon recently flagged competitors doing “dumb things” in lending. McDonald’s view is informed by Lehman’s 2008 collapse after heavy subprime exposure and high leverage.