Subprime mortgage crisis/Timelines: Difference between revisions
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==Sources== | |||
In addition to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in ''Fools Gold'' by Gillian Tett (see the [[/Bibliography|bibliography subpage]]). Numbers shown thus {123} are the relevant page numbers in that book. | |||
==The 1980s== | ==The 1980s== | ||
'''Financial deregulation''' [http://landru.i-link-2.net/monques/dereg80.html], [http://www.fdic.gov/regulations/laws/rules/8000-4100.html]. | '''Financial deregulation''' [http://landru.i-link-2.net/monques/dereg80.html], [http://www.fdic.gov/regulations/laws/rules/8000-4100.html]. | ||
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: Progressive '''discount rate increases '''(from 0.75% to 6.25% in 2006). | : Progressive '''discount rate increases '''(from 0.75% to 6.25% in 2006). | ||
: Ben Bernanke, Chairman of the Council of Economic Advisers, advises that house price rises "largely reflect economic fundamentals" | : Ben Bernanke, Chairman of the Council of Economic Advisers, advises that house price rises "largely reflect economic fundamentals" {144} | ||
:'''Housing boom continues ''' (Average 2006 house price about 70% above 2000 level) | :'''Housing boom continues ''' (Average 2006 house price about 70% above 2000 level) | ||
Revision as of 06:36, 27 October 2009
Sources
In addition to the sources that can be reached using the internet links shown thus [99], this timeline draws upon otherwise unpublished information obtained by interview and published in Fools Gold by Gillian Tett (see the bibliography subpage). Numbers shown thus {123} are the relevant page numbers in that book.
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].
- Housing boom begins (8% increase 2002 to 2003)
1999
Fannie Mae eases credit terms for subprime loans [5]
2002
President sets target for expanding minority home-owning [6].
2003 - 2006
- Progressive discount rate increases (from 0.75% to 6.25% in 2006).
- Ben Bernanke, Chairman of the Council of Economic Advisers, advises that house price rises "largely reflect economic fundamentals" {144}
- Housing boom continues (Average 2006 house price about 70% above 2000 level)
2007
June
25 Two Bear Stearns hedge funds threatened by losses from mortgage defaults [7].
August
6 American Home Mortgage bankrupt [8].
9 French bank BNP Paribas freezes funds because it is .unable to value its US mortgage-backed assets. [9]
2008
January
US mortgage lender Countrywide sold to Bank of America after its share price drops by 48% [10].
March
Bear Stearns bank rescued following losses relating to mortgage-related assets by its hedge funds. [11]
April
Global subprime crisis costs could reach $1 trillion (IMF estimate) [12].
IMF forecasts US recession and world growth slowdown [13].
June
US house prices 20% below 2006 peak [14].
August
Fannie Mae and Freddie Mac rescued [15].
September
7 Fannie Mae and Freddie Mac nationalised [16].
12 Lehman Brothers bankrupt[17] with losses of up to $160 billion to holders of its unsecured bonds.
'For further developments see crash of 2008 [18]'