Great Recession/Timelines
The 1980s
Financial deregulation [1], [2].
Savings and Loans crisis - failure of 296 US "Savings and Loans" mortgage lenders [3]
1990 - 2003
- Progressive discount rate cuts by Federal Reserve Bank (from 7% in 1990 t0 0.75% in 2003 [4].
- The United States housing boom begins (prices rise by 8% between 2002 and 2003)
2003 - 2006
- The Federal Reserve makes a series of discount rate increases (from 0.75% to 6.25% in 2006).
- The US housing boom continues [5] (Average 2006 house price about 70% above 2000 level)
2007
June
25 Two of the Bear Stearns Bank's suffer losses from mortgage defaults [6].
August
6 The American Home Mortgage Corporationgoes bankrupt [7].
9 The French bank BNP Paribas freezes its funds because it is unable to value their mortgage-backed assets. [8]
2008
January
US mortgage lender Countrywide is sold to Bank of America after its share price drops by 48% [9].
March
The Bear Stearns bank is rescued following losses relating to mortgage-related assets by its hedge funds. [10]
June
US house prices fall to 20% below their 2006 peak [11].
August
The government-sposores mortgage lender Fannie Mae and Freddie Mac are rescued [12].
September
7 Fannie Mae and Freddie Mac are nationalised [13].
12 The Lehman Brothers investment bankgoes bankrupt[14] with losses of up to $160 billion to holders of its unsecured bonds.