2008's Economic Crisis In Review
January
January
Bong Insurers (Monolines) Near Failure
Bad MLK Day for World Markets / Fed Rate Cut Next Day
Societé General Fraud: Jerome Cerviel
March
March
Bear Stearns Failure & Bailout (Mar 17)
July
Oil shoots to nearly $150 barrel (July)
ECB raises interest rate due to inflation fears (see oil)
September
September
Fannie/Freddie nationalized (Sept 7)
Oil shoots downward
Lehman Brothers bankrupt (Sept 14)
Merill Lynch sells to B/A (Sept 15)
US Treasury Bill hits lowest level ever
TARP proposed (3 pages) (Sept 19)
Iceland banking system collapses
WaMu fails; sold to JP Morgan
Fortis Bailed-out (Europe banking problems)
House rejects TARP (Sept 29)
-- biggest sell-off in 21 years (2nd largest ever)
October
October
First week --> Market Crash; worst week since 1931, second worst ever
Wachovia purchased by Citi then Wells Fargo
Britain announced bank recapitalization plan
TED Spread hits historic high (mid-Oct)
Dollar shoots up against world currencies
Currency collapse in emerging markets
November
November
Obama elected, stocks decline
No troubled assets for TARP, decline of markets
-- worst credit market ever
-- highest daily volatility and weekly volatility (VIX)
-- lowest S+P since 1997
-- Citi bailed out
-- turnaround on troubled assets
December
$50 billion Madoff ponzi scheme
Interest rates move toward 0
3-Month T-Bills negative
$17 trillion in value lost
