No one believed Bill Bonner when he warned about “subprime loans” in 2008.
These risky home loans brought the U.S. economy to the brink of collapse. They triggered a recession that swept the globe, wiping out millions of American retirement accounts.
As early as 2005, Mr. Bonner’s team wrote:
“Something is smoldering in the mortgage-lending market, and the heart of fire is on the balance sheet of Freddie Mac and Fannie Mae.”
Meanwhile, the Wall Street Journal wrote that, “fears of a housing bubble are overblown.”
We all know what happened next.
Housing prices dropped 18% in 2008 alone and almost 4 million U.S. homes were foreclosed the year after.
Overall, more than $16.4 trillion vanished from American households in less than two years. Meanwhile, both Freddie Mac and Fannie Mae stock prices crashed.
Since 1979, Bill Bonner has made a name for himself in the financial world with