Great Recession/Timelines: Difference between revisions
Jump to navigation
Jump to search
imported>Nick Gardner |
imported>Nick Gardner |
||
| Line 9: | Line 9: | ||
: The average house price rises by 80% [http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_History_102626.xls] between 2001 and 2006 and then falls by 8% from its 2006 peak to mid-2007 . | : The average house price rises by 80% [http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_History_102626.xls] between 2001 and 2006 and then falls by 8% from its 2006 peak to mid-2007 . | ||
==Financial crisis (June 2007 to | ==Financial crisis (June 2007 to December 2008)== | ||
June 2007 | June 2007 | ||
| Line 33: | Line 33: | ||
: There are multiple bank failures and rescues in the United States and Europe. | : There are multiple bank failures and rescues in the United States and Europe. | ||
::''(See [[Crash of 2008/Timelines#The Crash stage 3 (September - December 2008)|The Crash stage 3/September]] timeline of the [[Crash of 2008]] article). | ::''(See [[Crash of 2008/Timelines#The Crash stage 3 (September - December 2008)|The Crash stage 3/September]] timeline of the [[Crash of 2008]] article). | ||
October 2008 | |||
: Nationwide bank rescues recapitalisations, depositor guarantees by United States and European govermments' | |||
::''(See [[Crash of 2008/Timelines#October|The Crash stage 3/October]] timeline of the [[Crash of 2008]] article). | |||
==Recession== | ==Recession== | ||
Revision as of 03:55, 4 February 2011
Prelude (trends: January 2000 to June 2007)
Capital flows:
- Flows of capital into the advanced countries, rising from about 8 per cent of world GDP in 2002 to about 16 per cent in 2007
US Monetary policy
- Progressive discount rate reductions by the Federal Reserve reducing the federal funds rate from 6 per cent in 2000 to 1 per cent in 2003, followed by increases to 5.25 per cent in 2006)[1].
US housing boom and bust
- The average house price rises by 80% [2] between 2001 and 2006 and then falls by 8% from its 2006 peak to mid-2007 .
Financial crisis (June 2007 to December 2008)
June 2007
- US Credit rating agencies downgrade over 100 bonds backed by subprime mortgages.
- Two of the Bear Stearns'' investment bank's hedge funds are threatened by losses from mortgage defaults [3].
August 2007
- The French BNP Paribas bank announces that it is unable to value bonds backed by US house mortgages[4]
- The interbank market is near collapse [5].
September 2007
March 2008
- The US Bear Stearns investment bank is rescued [7].
August 2008
- The US government-sponsored house mortgage lenders Fannie Mae and Freddie Mac are rescued from bankruptcy [8].
September 2008
- The US Lehman Brothers investment bank is bankrupt [9][10][11] with losses of $365 billion to insurers of its bonds. $785m worth of its funds are written off and money market investors suffer a massive loss [12].
- There is panic in the money market and a halt in trading in the interbank market.
- There are multiple bank failures and rescues in the United States and Europe.
- (See The Crash stage 3/September timeline of the Crash of 2008 article).
October 2008
- Nationwide bank rescues recapitalisations, depositor guarantees by United States and European govermments'
- (See The Crash stage 3/October timeline of the Crash of 2008 article).