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 2007: American 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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