Great Recession/Timelines: Difference between revisions

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==2002-2007 US housing boom and bust ==
==2002-2007 US housing boom and bust ==
*  The average price of a US house increased by about  70% between 2000 and 2006 [http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112766.pdf] and then fell to 6.5% below the 2006 peak by July 2007[http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm].  
*  The average price of a US house increased by about  70% between 2000 and 2006 <ref>http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112766.pdf</ref> and then fell to 6.5% below the 2006 peak by July 2007<ref>http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm</ref>.  
* [[subprime mortgage crisis/Timelines#2007| The subprime mortgage crisis]] - including losses from [[mortgage]] [[default (finance)|defaults]] by the  ''Bear Stearns'' bank's  [[hedge fund]]s   [http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms] and the [[bankruptcy]] of  the  ''American Home Mortgage Corporation'' [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece]..
* [[subprime mortgage crisis/Timelines#2007| The subprime mortgage crisis]] - including losses from [[mortgage]] [[default (finance)|defaults]] by the  ''Bear Stearns'' bank's  [[hedge fund]]s<ref>http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms</ref> and the [[bankruptcy]] of  the  ''American Home Mortgage Corporation'' <ref>http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece</ref>.


==2007-2008 International financial  panic==
==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. [http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV]
* August 9: The French bank ''BNP Paribas'' freezes  its  funds because it is unable to value their mortgage-backed assets. <ref>http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV</ref>


* September 12 The ''Lehman Brothers'' [[investment bank]] becomes [[bankruptcy|bankrupt]][http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf] 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]].
* September 12 The ''Lehman Brothers'' [[investment bank]] becomes [[bankruptcy|bankrupt]]<ref>http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf</ref> 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]].


* [[Crash of 2008/Timelines#The Crash|The crash of 2008]]
* [[Crash of 2008/Timelines#The Crash|The crash of 2008]]
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==2008-2009 The international response==
==2008-2009 The international 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 [http://news.bbc.co.uk/1/hi/business/7658307.stm] [http://news.bbc.co.uk/1/hi/business/7658277.stm], and similar action is agreed by European Union leaders [http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story] and the US President[http://www.whitehouse.gov/news/releases/2008/10/20081014.html]and there are rescues of individual banks in Europe  [http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html][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] and the United States [http://www.dw-world.de/dw/article/0,2144,3692522,00.html].
* 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 coordinated monetary stimulus'''.  
'''The coordinated monetary stimulus'''.  
* A [[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].
* A [[discount rate]]  cut of half per cent by the [[central bank]]s of the United States, Europe, China,  Britain, Canada, Sweden and Switzerland <ref>http://news.bbc.co.uk/1/hi/business/7658958.stm</ref>.


'''Agreement on a collective [[fiscal stimulus]]'''
'''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  
*  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]] [[spread]]s reach  over 350 [[basis point]]s (compared with  August 2007 rates of around 10 points)[http://research.stlouisfed.org/publications/es/08/ES0825.pdf].)
* The [[money market]] panic persists ([[LIBOR]]-[[OIS]] [[spread]]s reach  over 350 [[basis point]]s (compared with  August 2007 rates of around 10 points)<ref>http://research.stlouisfed.org/publications/es/08/ES0825.pdf</ref>.)


'''Domestic measures'''
'''Domestic measures'''
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* The [[The European Central Bank]] discount rate is cut to 1 percent - the interest rate on the main refinancing operations of the [[Euro]] system  be decreased by 25 basis points to 1.00%, from 13/05/09[http://www.ecb.int/press/pr/date/2009/html/pr090507.en.html].  ECB quantitative easing starts - with plans to buy €60bn worth of bonds. [http://www.ecb.int/press/pressconf/2009/html/is090507.en.html]  ECB balance sheet total reaches €2,000 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf].
* The [[The European Central Bank]] discount rate is cut to 1 percent - the interest rate on the main refinancing operations of the [[Euro]] system  be decreased by 25 basis points to 1.00%, from 13/05/09[http://www.ecb.int/press/pr/date/2009/html/pr090507.en.html].  ECB quantitative easing starts - with plans to buy €60bn worth of bonds. [http://www.ecb.int/press/pressconf/2009/html/is090507.en.html]  ECB balance sheet total reaches €2,000 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf].
* Ireland's supplementary budget - a number of tax increases and public expenditure cuts designed to reduce the deficit to 10.75 per cent of GDP for 2009 [http://www.budget.gov.ie/2009SupApril09/FinancialStatement.html].
* Ireland's supplementary budget - a number of tax increases and public expenditure cuts designed to reduce the deficit to 10.75 per cent of GDP for 2009 [http://www.budget.gov.ie/2009SupApril09/FinancialStatement.html].
* The [[Bank of England]]'s [[discount  rate]] is to reduced to0.5% and announces £75 billion asset purchase under its Asset Purchase Scheme [http://www.bankofengland.co.uk/markets/apf/] The Bank of England's balance sheet total reaches £227 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf]
* The [[Bank of England]]'s [[discount  rate]] is to reduced to0.5% and announces £75 billion asset purchase under its Asset Purchase Scheme [http://www.bankofengland.co.uk/markets/apf/ ] The Bank of England's balance sheet total reaches £227 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf ]
====Asia====
====Asia====
: The Bank of Japan's balance sheet total reaches Y110,000 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf].
: The Bank of Japan's balance sheet total reaches Y110,000 billion [http://www.imf.org/external/pubs/ft/gfsr/2009/02/pdf/text.pdf].
 
-->


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Revision as of 13:32, 11 March 2010

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https://en.citizendium.org/wiki/index.php?title=Great_Recession/Timelines&printable=yes
A timeline (or several) relating to Great Recession.

2002-2007 US housing boom and bust

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]

2008-2009 The international 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.

Agreement on a collective fiscal stimulus

Domestic measures

2009 Global downturn and (patchy) recovery


2009-201 The fiscal stability issue

  1. ↑ http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112766.pdf
  2. ↑ http://money.cnn.com/2007/05/14/real_estate/first_quarter_NAR_prices/index.htm
  3. ↑ http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aYDTeHYnV3ms
  4. ↑ http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2208983.ece
  5. ↑ http://invest.bnpparibas.com/en/news/default.asp?Code=LPOI-75W9PV
  6. ↑ http://www.lehman.com/press/pdf_2008/091508_lbhi_chapter11_announce.pdf
  7. ↑ http://news.bbc.co.uk/1/hi/business/7658307.stm]
  8. ↑ [http://news.bbc.co.uk/1/hi/business/7658277.stm
  9. ↑ [http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story
  10. ↑ http://www.whitehouse.gov/news/releases/2008/10/20081014.html
  11. ↑ http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html
  12. ↑ 12.0 12.1 http://www.dw-world.de/dw/article/0,2144,3692522,00.html
  13. ↑ http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece
  14. ↑ http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank
  15. ↑ http://news.bbc.co.uk/1/hi/business/7658958.stm
  16. ↑ http://research.stlouisfed.org/publications/es/08/ES0825.pdf
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