When interest rates are pushed artificially low in the midst of constantly-increasing costs of living, the avenues by which average Americans save and grow their wealth are limited. Frugality—demonstrated by spending less than you earn and socking away a portion of your income in bank CDs—becomes an exercise in frustration as widespread price inflation eats away any nominal increase in wealth.

In the ensuing search for higher yield, average Americans are pushed to take more risk in order to earn returns that have a chance of outpacing relentless price inflation.

A few years ago, this dynamic was exemplified by the collapse in commercial real estate valuations, especially in the apartment sector. After years of aggressively soliciting the funds of average Americans to purchase and develop apartment complexes—many poorly built and in awful areas—asset managers promptly saw apartment values decline below their corresponding loan balances. In a great number of cases, those average Americans lost their entire investment.

However, in a coordinated effort to avoid loss of their own capital, the most well-connected real estate asset managers and lenders lobbied the Federal Reserve and federal government for special favors, notably access to cheap loans originated from money newly created at the expense of those same taxpaying Americans. The authorities eagerly complied.

Today, the same story appears to be playing out in the private credit sector. And as distress builds there, the same resolution—access to cheap, newly-created money provided at the expense of the taxpayer—is likely to be pursued again.

As companies go about the business of pursuing profits, they must acquire the materials and personnel to do so. This often requires them to borrow money. Conventionally, this type of borrowing—especially for firms that are not already huge—is done through banking channels. A company officer calls up a banker, explains the need........

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