Time passes quickly.
It's been 13 years since the start of the 2007-2009 financial crisis. As you may recall, the subprime mortgage market imploded.
Plus, a lot of businesses bit the dust.
Seven months before the October 2007 stock market top, the March 2007 Elliott Wave Theorist foresaw the consequences of the debt bubble that had developed:
This period of financial and economic levitation has placed nearly every financial institution, corporation and government on the margin of survival, an unprecedented situation. So many institutions are so vulnerable that the only way this debt bubble can resolve is in one mad implosion lasting but a few years. Most of the debt structure will unravel in [the next major stock market downturn], precipitating a breath-takingly swift and severe financial and economic collapse. It should bring with it shocking negative revelations--defaults, scandals, losses, bankruptcies, fund closures and business closures--on a weekly basis, eventually swelling to multiple events daily.
Since then, there's been another "period of financial and economic levitation" -- this one lasting considerably longer. Indeed, the bull market that followed the Great Recession had been the longest in history with the peak occurring in February 2020.
The consequences are expected to be commensurate. Thus, they've only begun.
Here's a May 28, 2020 Bloomberg headline -- followed by an article excerpt:
Big Bankruptcies Sweep the U.S. in Fastest Pace Since May 2009
In the first few weeks of the pandemic, it was just a trickle: companies like Alaskan airline Ravn Air pushed into bankruptcy as travel came to a halt and markets collapsed. But the financial distress wrought by the shutdowns only deepened, producing what is now a wave of insolvencies washing through America's corporations.
In May alone, some 27 companies reporting at least $50 million in liabilities sought court protection from creditors -- the highest number since the Great Recession. They range from well-known U.S. mainstays such as J.C. Penney Co. and J. Crew Group Inc. to air carriers Latam Airlines Group SA and Avianca Holdings, their business decimated as travelers stayed put.
In May 2009, 29 major companies filed for bankruptcy, according to data compiled by Bloomberg. And year-to-date, there have been 98 bankruptcies filed by companies with at least $50 million in liabilities -- also the highest since 2009, when 142 companies filed in the first four months.
Few people believe bankruptcies have by any means hit a peak.
"I think we're going to continue to see filings of at least the level we're seeing for a while," said... a former bankruptcy judge.