facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog external search

2007 vs. 2015 - Is it different?


Let's take a look back in history to the housing crisis crash, the great recession, or whatever you want to call the 55% drop in the stock market from 2007 to 2009.  Does this sound anything like 2015?

The Situation Then:

  • Financial institutions are declared insolvent – many banks fail stress test
  • The Prime Money Market Fund threatens to break the buck
  • Emergency FED meeting – rates lowered from 6.25% to .5% in 18 months
  • Financial firms teetering on bankruptcy – Lehman Bros. shuts the doors forever
  • Emergency meeting with the President, the FED Chairman, and the Treasury Secratary to discuss bailout
  • Some companies deemed too big to fail – bailed out by taxpayers money
  • Oil reaches $147.00/bbl; gasoline tops $4.00/gallon
  • Automobile companies nearly bankrupt; require bailout, then go bankrupt
  • Cash for Clunkers! (remember when used cars got expensive?)
  • Congress passes emergency “stimulus” bill for nearly $1 Trillion – all debt
  • “Shovel-ready jobs” aren’t shovel-ready after all
  • Home­ mortgages under water; credit default swaps skyrocket, CMOs fall apart
  • Layoffs approach records as Unemployment Rate skyrockets over 10%
  • President defers to President-elect for guidance through the crisis
  • 150 years of corporate law upended when bondholders are stiffed in favor of unions
  • Stock market down 55% in 18 months

The Situation Now:

  • China growth slows from 7% to 5%
  • FED may raise rates from zero to ¼% next month (I guess not, however)
  • Oil falls below $40.00/bbl; gasoline falls to $2.66 and keeps falling
  • Employment rate is at 5.3%
  • Unfilled jobs near an all-time high
  • Greece accepts austerity measures, avoids default
  • Unemployment in Spain drops below 23% (believe it or not, that is a huge improvement)
  • New car sales are very strong
  • Restaurant sales are close to surpassing grocery store sales for the first time in history

So you tell me, are we looking at 2007 all over again?