Great Recession/Timelines: Difference between revisions
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imported>Nick Gardner |
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* [[Crash of 2008/Timelines#The Crash|The crash of 2008]] | * [[Crash of 2008/Timelines#The Crash|The crash of 2008]] | ||
==2008-2009 The international response== | ==2008-2009 The international policy response== | ||
'''The Banking systems rescues.''' | '''The Banking systems rescues.''' | ||
* The UK's Gordon Brown offers unlimited support to all UK banks by capital support, equity purchase and lending guarantees <ref>http://news.bbc.co.uk/1/hi/business/7658307.stm]</ref><ref> [http://news.bbc.co.uk/1/hi/business/7658277.stm</ref>, and similar action is agreed by European Union leaders <ref>[http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story</ref> and the US President<ref>http://www.whitehouse.gov/news/releases/2008/10/20081014.html</ref>and there are rescues of individual banks in Europe <ref>http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html</ref><ref name="dw-world">http://www.dw-world.de/dw/article/0,2144,3692522,00.html</ref> <ref>http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece</ref><ref>http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank</ref> and the United States <ref name="dw-world"/>. | * The UK's Gordon Brown offers unlimited support to all UK banks by capital support, equity purchase and lending guarantees <ref>http://news.bbc.co.uk/1/hi/business/7658307.stm]</ref><ref> [http://news.bbc.co.uk/1/hi/business/7658277.stm</ref>, and similar action is agreed by European Union leaders <ref>[http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story</ref> and the US President<ref>http://www.whitehouse.gov/news/releases/2008/10/20081014.html</ref>and there are rescues of individual banks in Europe <ref>http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html</ref><ref name="dw-world">http://www.dw-world.de/dw/article/0,2144,3692522,00.html</ref> <ref>http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece</ref><ref>http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank</ref> and the United States <ref name="dw-world"/>. | ||
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* 16 The US [[Federal Reserve System|Federal Reserve]] begins [[credit easing]] - using [[open market operations]] to raise the amount of [[base money]] from $0.9 trillion to $2.2 trillion [http://online.wsj.com/article/SB122948091644013041.html] | * 16 The US [[Federal Reserve System|Federal Reserve]] begins [[credit easing]] - using [[open market operations]] to raise the amount of [[base money]] from $0.9 trillion to $2.2 trillion [http://online.wsj.com/article/SB122948091644013041.html] | ||
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==2009 Global downturn and (patchy) recovery == | ==2009 Global downturn and (patchy) recovery == | ||
* [[Recession of 2009/Timelines#2009, 1st quarter|The recession of 2009]] | * [[Recession of 2009/Timelines#2009, 1st quarter|The recession of 2009]] | ||
Revision as of 15:06, 11 March 2010
2002-2007 US housing boom and bust
- 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].
2007-2008 International financial panic
- August 9: The French bank BNP Paribas freezes its funds because it is unable to value their mortgage-backed assets. [5]
- September 12 The Lehman Brothers investment bank becomes bankrupt[6] 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.
2008-2009 The international policy response
The Banking systems rescues.
- The UK's Gordon Brown offers unlimited support to all UK banks by capital support, equity purchase and lending guarantees [7][8], and similar action is agreed by European Union leaders [9] and the US President[10]and there are rescues of individual banks in Europe [11][12] [13][14] and the United States [12].
The coordinated monetary stimulus.
- A discount rate cut of half per cent by the central banks of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [15].
Agreement on a collective fiscal stimulus
- November 15: The first G20 summit of leaders of the Group of Twenty countries agree to take expansionary fiscal action
- The money market panic persists (LIBOR-OIS spreads reach over 350 basis points (compared with August 2007 rates of around 10 points)[16].)
Domestic measures
2009 Global downturn and (patchy) recovery
2009-201 The fiscal stability issue
References
- ↑ http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112766.pdf
- ↑ http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm
- ↑ http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms
- ↑ http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece
- ↑ http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV
- ↑ http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf
- ↑ http://news.bbc.co.uk/1/hi/business/7658307.stm]
- ↑ [http://news.bbc.co.uk/1/hi/business/7658277.stm
- ↑ [http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story
- ↑ http://www.whitehouse.gov/news/releases/2008/10/20081014.html
- ↑ http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html
- ↑ 12.0 12.1 http://www.dw-world.de/dw/article/0,2144,3692522,00.html
- ↑ http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece
- ↑ http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank
- ↑ http://news.bbc.co.uk/1/hi/business/7658958.stm
- ↑ http://research.stlouisfed.org/publications/es/08/ES0825.pdf