Great Recession/Timelines: Difference between revisions

Revision as of 02:36, 21 March 2010

The average price of a US house increased by about 70% between 2000 and 2006 [1] and then fell to 6.5% below the 2006 peak by July 2007[2].
The subprime mortgage crisis - including losses from mortgage defaults by the Bear Stearns bank's hedge funds [3] and the bankruptcy of the American Home Mortgage Corporation [4]..

August 9 2007: The French bank BNP Paribas freezes its funds because it is unable to value their mortgage-backed assets. [5]

September 12 2008 The Lehman Brothers investment bank becomes bankrupt [6][7] with losses of up to $160 billion to holders of its unsecured bonds prompting a sudden loss of confidence in money market funds and the onset of a credit crunch.

The UK offers unlimited support to all UK banks by capital support, equity purchase and lending guarantees [8] [9], and similar action is agreed by European Union leaders [10] and the US President[11]and there are rescues of individual banks in Europe [12][13] [14][15] and the United States [16].

A coordinated discount rate cut of half per cent by the central banks of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [17](in October) followed by progressive reductions to reach 1/4 per cent in the United States[18]. (December), 1/2 per cent in the United Kingdom [19] (March) and 1 per cent in the Eurozone[20] (May)
Quantitative easing (or "credit easing" in the case of the United States) is introduced by the central banks of the United States[21][22][23] (in December), the United Kingdom[24] (in January) and the Eurozone[25] (in May).

November. The first G20 summit of leaders of the Group of Twenty countries agree to take expansionary fiscal action

@@ Line 21: / Line 21: @@
 ===Monetary policy===
-* A coordinated [[discount rate]]  cut of half per cent by the [[central bank]]s of the United States, Europe, China,  Britain, Canada, Sweden and Switzerland [http://news.bbc.co.uk/1/hi/business/7658958.stm](in October).
+* A coordinated [[discount rate]]  cut of half per cent by the [[central bank]]s of the United States, Europe, China,  Britain, Canada, Sweden and Switzerland [http://news.bbc.co.uk/1/hi/business/7658958.stm](in October) followed by progressive reductions to reach 1/4 per cent in the United States[http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm]. (December), 1/2 per cent in the United Kingdom [http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2009/mpc0903.pdf.] (March) and 1 per cent in the Eurozone[http://www.ecb.int/press/pr/date/2009/html/pr090507.en.html] (May)
 * [[Quantitative easing]] (or "[[credit easing]]" in the case of the United States) is introduced by the [[central bank]]s of the United States[http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm][http://online.wsj.com/article/SB122948091644013041.html][http://www.federalreserve.gov/newsevents/speech/bernanke20090113a.htm] (in December), the United Kingdom[http://www.hm-treasury.gov.uk/d/ck_letter_boe290109.pdf] (in January) and the Eurozone[http://www.ecb.int/press/pressconf/2009/html/is090507.en.html] (in May).