In the ’90s, I was a senior managing director at the then-famed Bear Stearns.
The U.K. headquarters were located at One Canada Square, in Canary Wharf. It’s now one of the most important business districts in the world.
My office was on the 25th floor. That means I was, so to speak, on the ground floor of investment banking in the U.K.
And I built one of the most admired analytical teams in London finance, from scratch.
But years later, things got out of hand in the world of global investment banking.
Bear Stearns went bust in March 2008. Later that year, Lehman Brothers – another one of my former employers – also filed for bankruptcy.
Lehman’s collapse was a key trigger event for one of the worst global financial crises we’ve ever seen.
It sent ripples throughout the world. And it exposed the toxic rot that, among other things, lay at the core of the housing market collapse in the U.S.
Today, we’re moments away from another housing crisis that could trigger a wave of bankruptcies on Wall Street. According to Bloomberg:
The wave of [bankruptcies] that’s coming could be the worst since the housing bubble burst about 15 years ago.
But it will be different from the housing crisis we saw in 2008. And this time, I want you to be prepared.
Because if you know what’s coming – and how to position yourself for it – there’s a chance to turn this crisis into profits.
I’ll get to more on that in a moment. But first, let’s revisit that pivotal moment in our economy’s history…
Fast Money and Greed
After Bear Stearns went bust in March 2008, JPMorgan Chase bought up parts of it.
But Bear Stearns wasn’t the only doomed bank casualty of the financial crisis of 2008.
It was one of a list of financial players that ignored risk while stretching out for fast money and greed.
Lehman Brothers also had its European headquarters in Canary Wharf. It filed for bankruptcy on September 15, 2008.
The very next day, the British investment bank Barclays moved to buy up Lehman’s U.S. operations.
But by then, the psychological damage was done… and the stability of the markets was wrecked.
Lehman’s collapse sent the world into a financial tailspin, and then into an economic crisis of a kind not seen in generations.
Governments unleashed epic bailouts on Wall Street and global banks. Central banks unloaded an arsenal of loose monetary policies in an effort to prevent a feared fallout of the entire global financial system.
That was the first phase of The Great Distortion I often write about in Inside Wall Street. My regular readers know that story. And many of us saw the consequences firsthand.
Unemployment skyrocketed. Bankruptcies snowballed. People were forced from their homes. And millions were pushed into poverty.
When all was said and done, $10.2 trillion had been wiped out, ruining the retirement of millions… 8.7 million Americans lost their jobs… and nearly 10 million lost their homes.
The truth is that the biggest banks got too complex with their trading. They were offering up products to investors, pension funds, and cities around the world.
They promised them financial innovation and upside.
But the system buckled when every institution was over-leveraged. Banks risked the well-being of the economy in order to make money.
They failed. Most of them got bailed out.
Central banks got massively more powerful in the process. Then the pandemic hit in 2020, and they fabricated money again.
That is when The Great Distortion became a permanent one.
Ignoring History Could Be Costly
Unfortunately, we’re now barreling toward a similar kind of situation.
Here in America, the house of cards is on the verge of collapse. And if you have exposure to the stocks caught in the crossfire, the losses could be catastrophic.
But there’s good news…
Armed with the right strategy, it’s possible to turn this crisis into big profits.
And I’m taking what I learned during my 15 years on Wall Street and in London to give you the chance to do just that.
On Tuesday, December 13, at 8 p.m. ET, I’m hosting a special strategy session, Countdown to Housing Crisis 2.0.
I’ll show you how a legendary investor is already betting $200 million against the housing market…
I’ll reveal the looming Washington event happening this month that could send this house of cards collapsing…
And I’ll tell you about a strategy that Wall Street loves… that can give you the chance to “flip” losers into big winners.
I’ll even give away a free recommendation that I believe could be one of the No.1 plays for 2023.
So be sure to join me on December 13. Just RSVP with one click right here, and I look forward to seeing you there.
Editor, Inside Wall Street with Nomi Prins