Great Recession/Timelines: Difference between revisions
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imported>Nick Gardner |
imported>Nick Gardner |
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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 recovery == | ==2009 Global downturn and (patchy) recovery == | ||
* [[Recession of 2009/Timelines#2009, 1st quarter|The recession of 2009]] | |||
* [[Recession of 2009/Timelines#2009 4th quarter|The patchy recovery]] | |||
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* Greece’s [[credit rating agency|credit rating]] was downgraded to BBB+, with a negative outlook, by the ''Fitch'' [[credit rating agency]]. | * Greece’s [[credit rating agency|credit rating]] was downgraded to BBB+, with a negative outlook, by the ''Fitch'' [[credit rating agency]]. | ||
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==2009-201 The fiscal stability issue== | ==2009-201 The fiscal stability issue== | ||
Revision as of 10:50, 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 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 [15].
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 [16].
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)[17].)
Domestic measures
2009 Global downturn and (patchy) recovery