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 | * 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]. | ||
* | * [[subprime mortgage crisis/Timelines| 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].. | ||
==2007-2008 International financial panic== | ==2007-2008 International financial panic== | ||
Revision as of 06:43, 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