Chris Whalen, chairman of Whalen Global Advisors and author of The Institutional Risk Analyst blog, joins The Julia La Roche Show for "The Wrap with Chris Whalen" for his 2026 outlook.
In this episode, Whalen warns of a market correction comparable to 2008, driven by carnage in private equity where hundreds of companies cannot be sold and sponsors are selling companies to themselves. After a decade-and-a-half Fed liquidity party, he predicts corporate credit will worsen in 2026, setting the stage for a housing market decline in 2027-28. Whalen reveals fraud has become epidemic in housing thanks to AI-altered bank statements, discusses the global power shift as Shanghai now sets gold prices (not Chicago or London), and explains why Powell will likely stay on the Fed board through 2028 to protect the institution - betraying Trump just like every Fed chair before him.
Links:
The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/
https://www.theinstitutionalriskanalyst.com/post/theira794
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/
Timestamps:
0:00 Intro and welcome back to The Wrap with Chris Whalen
01:25 2025 retrospective
3:35 Big stories of 2026
05:30 Midterms
08:21 Maxi market correction coming alongside 2008 in textbooks
15:09 Will Powell retire or remain on the board?
16:45 Will we see a more hawkish Fed in 2026?
17:50 Default rates
21:25 What happens with housing in 2026
22:42 Drawing parallels to the Gilded Age
26:29 Gold and silver - another good year ahead
32:41 Viewer question: Annaly mortgage REIT common vs preferred
36:48 What's on the radar next week: Big investment banks piece
38:18 Wrap up and where to find Chris Whalen