The U.S. economy is undergoing a significant structural shift as it transitions into a 'managed capitalism' era, characterized by a decline in equity investment and a rise in private credit. Public equity issuance has reached historic lows, while private credit assets under management have surged past $1.7 trillion. This trend is driven by companies increasingly opting for debt over equity due to challenges in public market structures, such as low liquidity and punitive valuations for asset-heavy models. This shift highlights a broader trend of financialization, where economic growth is propelled by policy and asset inflation rather than productivity. The rise of passive investment and algorithmic liquidity is further distorting price discovery, impacting innovation and long-term productivity gains.