Deja Vu

by Bruce O’Hara

March 16, 2023

We’ve seen this movie before. If you’ve forgotten the horrors the Great Financial Crisis of 2007-2008, let me remind you.

A housing bubble fuelled by low interest rates and easy-lending practices peaks in 2006. The Federal Reserve is raising interest rates. Delinquency rates on sub-prime mortgages are rising. The dominoes start to fall:

April 2007: Sub-prime lender New Century files for bankruptcy.

August 2007American Home Mortgage declares bankruptcy

December 2007: Delta Financial fails.

January 2008: Bank of America buys distressed Countrywide Financial.

March 2008: JP Morgan buys collapsing Bear Sterns for $2/share.

July 2008: IndyMac fails.

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