Recession of 2009/Timelines: Difference between revisions
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====World==== | ====World==== | ||
:G20 leaders agree on need for fiscal stimulus [http://en.citizendium.org/wiki/G20_summit/Addendum] | |||
:The oil price falls. (November US light $60/barrel, down fron July $147 peak)[http://www.msnbc.msn.com/id/12400801/]. | :The oil price falls. (November US light $60/barrel, down fron July $147 peak)[http://www.msnbc.msn.com/id/12400801/]. | ||
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: Federal Reserve Bank cuts its discount rate to 0 to 1/4 per cent [http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm]. | : Federal Reserve Bank cuts its discount rate to 0 to 1/4 per cent [http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm]. | ||
:Federal Reserve Bank's $800 billion support package [http://www.nytimes.com/2008/11/26/business/economy/26fed.html?bl&ex=1227848400&en=5a50becfbe5bac73&ei=5087%0A] | |||
:Federal Reserve Bank buys mortgage-backed securities - Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [http://www.economist.com/finance/displaystory.cfm?story_id=12689745]. | |||
:US Federal Reserve Bank's quantitative easing - Open market purchases raise base money (the Bank's balance sheet total) from $0.9 trillion to $2.2 trillion [http://online.wsj.com/article/SB122948091644013041.html] | |||
====Europe==== | ====Europe==== | ||
| Line 31: | Line 40: | ||
====World==== | ====World==== | ||
: World trade falls - the value of trade by the G7 countries is 23% below that of Q1 2008. | |||
: Trade protection grows - World Bank reports 47 trade restrictions by 17 G20 countries [http://www.economist.com/finance/displaystory.cfm?story_id=13355727] | |||
:Developing countries lose exports [http://siteresources.worldbank.org/NEWS/Resources/swimmingagainstthetide-march2009.pdf]. | |||
====United States==== | ====United States==== | ||
: | : Congress approves stimulus package - American Recovery and Reinvestment Act(H.R. 1) - a $839 billion stimulus package [http://www.recovery.gov/] | ||
:Financial Stability Plan - Government launches a plan intended to restore confidence in the financial system (including mandatory stress tests for major banks) and to provide financial assistance to households and businesses[http://www.financialstability.gov/docs/fact-sheet.pdf] | |||
:Federal Reserve plans to increase the size of its balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. [http://www.federalreserve.gov/newsevents/press/monetary/20090318a.htm] | |||
:Public Private Partnership Investment Program announced [http://www.ustreas.gov/press/releases/tg65.htm] for the purchase of $1 trillion worth of toxic assets from banks. | |||
====Europe==== | ====Europe==== | ||
: European Central Bank cuts MRO rate to 2% [http://www.ecb.int/stats/monetary/rates/html/index.en.html#data] | : European Central Bank cuts MRO rate to 2% [http://www.ecb.int/stats/monetary/rates/html/index.en.html#data] | ||
: UK Fiscal stimulus announced - including a temporary reduction of the rate of value-added tax from 17.5% to 15%, a bringing forward of £3 billion of capital investment, and a range of minor tax reductions. | |||
: Bank of England starts quantitative easing '''[http://www.hm-treasury.gov.uk/d/ck_letter_boe290109.pdf] and '''Asset protection '''[http://www.hm-treasury.gov.uk/press_07_09.htm][http://www.bankofengland.co.uk/publications/quarterlybulletin/mo09feb.pdf] | |||
: Bank of England cuts discount rate cut- from 2% to 1.5% [http://www.bankofengland.co.uk/publications/news/2009/001.htm]. | : Bank of England cuts discount rate cut- from 2% to 1.5% [http://www.bankofengland.co.uk/publications/news/2009/001.htm]. | ||
: | : UK banks lent £185 bn under the Special Liquidity Scheme [http://news.bbc.co.uk/2/hi/business/7867355.stm] | ||
: Germany introduces major fiscal stimulus package [http://www.economist.com/displayStory.cfm?story_id=12947570] | : Germany introduces major fiscal stimulus package [http://www.economist.com/displayStory.cfm?story_id=12947570] | ||
| Line 51: | Line 68: | ||
====United States==== | ====United States==== | ||
:Banks fail stress tests - of the 19 banks tested, it was found that ten of them need to raise a total of $74.6bn. Any who fail to raise their quota will come under increased government control. | |||
:10 banks repay Treasury loans' - received under the Troubled Asset Relief Program. | |||
:Mark to market rule eased for inactive markets to what an asset could fetch in an "orderly" transaction (not including distressed transactions or fire-sales)[http://www.reuters.com/article/newsOne/idUSN0235590020090402] | |||
====Europe==== | ====Europe==== | ||
:ECB discount rate cut to 1 percent - the interest rate on the main refinancing operations of the Eurosystem 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] | |||
: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]. | |||
: Bank of England cuts discount rate to 0.5% and announces £75 billion asset purchase under its Asset Purchase Scheme [http://www.bankofengland.co.uk/markets/apf/] . The beginning of its programme of ''quantitative easing'' [http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/]. | : Bank of England cuts discount rate to 0.5% and announces £75 billion asset purchase under its Asset Purchase Scheme [http://www.bankofengland.co.uk/markets/apf/] . The beginning of its programme of ''quantitative easing'' [http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/]. | ||
Revision as of 09:29, 6 October 2009
(for earlier events see the crash of 2008 timelines [[1]])
Timelines 2008-2010
2008, 4th quarter
World
- G20 leaders agree on need for fiscal stimulus [2]
- The oil price falls. (November US light $60/barrel, down fron July $147 peak)[3].
United States
- Federal Reserve Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [4].
- Federal Reserve Bank cuts its discount rate to 0 to 1/4 per cent [5].
- Federal Reserve Bank's $800 billion support package [6]
- Federal Reserve Bank buys mortgage-backed securities - Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie Mae and Freddie Mac and up to $100billion worth of their direct debt [7].
- US Federal Reserve Bank's quantitative easing - Open market purchases raise base money (the Bank's balance sheet total) from $0.9 trillion to $2.2 trillion [8]
Europe
- European Central Bank cuts MRO rate from 3.75% to 2.5" [9]
- Bank of England cuts bank rate from 4.5% to 2%
- Britain adopts a major fiscal stimulus package [10].
- German bank rescue package is agreed [11].
- German Chancellor rejects fiscal stimulus policies ("senseless race to spend billions") [12].
Asia
- China announces a $586 billion fiscal stimulus [13]
2009, 1st quarter
World
- World trade falls - the value of trade by the G7 countries is 23% below that of Q1 2008.
- Trade protection grows - World Bank reports 47 trade restrictions by 17 G20 countries [14]
- Developing countries lose exports [15].
United States
- Congress approves stimulus package - American Recovery and Reinvestment Act(H.R. 1) - a $839 billion stimulus package [16]
- Financial Stability Plan - Government launches a plan intended to restore confidence in the financial system (including mandatory stress tests for major banks) and to provide financial assistance to households and businesses[17]
- Federal Reserve plans to increase the size of its balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. [18]
- Public Private Partnership Investment Program announced [19] for the purchase of $1 trillion worth of toxic assets from banks.
Europe
- European Central Bank cuts MRO rate to 2% [20]
- UK Fiscal stimulus announced - including a temporary reduction of the rate of value-added tax from 17.5% to 15%, a bringing forward of £3 billion of capital investment, and a range of minor tax reductions.
- Bank of England starts quantitative easing [21] and Asset protection [22][23]
- Bank of England cuts discount rate cut- from 2% to 1.5% [24].
- UK banks lent £185 bn under the Special Liquidity Scheme [25]
- Germany introduces major fiscal stimulus package [26]
Asia
2009, 2nd quarter
World
- Oil price rises - to over $70 per barrel
United States
- Banks fail stress tests - of the 19 banks tested, it was found that ten of them need to raise a total of $74.6bn. Any who fail to raise their quota will come under increased government control.
- 10 banks repay Treasury loans' - received under the Troubled Asset Relief Program.
- Mark to market rule eased for inactive markets to what an asset could fetch in an "orderly" transaction (not including distressed transactions or fire-sales)[27]
Europe
- ECB discount rate cut to 1 percent - the interest rate on the main refinancing operations of the Eurosystem be decreased by 25 basis points to 1.00%, from 13/05/09[28].
- ECB quantitative easing starts - with plans to buy €60bn worth of bonds. [29]
- 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 [30].
- Bank of England cuts discount rate to 0.5% and announces £75 billion asset purchase under its Asset Purchase Scheme [31] . The beginning of its programme of quantitative easing [32].