One of the important developments: the specific nodes are as follows:
February 13, 2007
U.S. mortgage risks begin to surface;
HSBC Holdings adds $1.8 billion in bad debt provisions for its subprime mortgage business in the U.S.
Countrywide Financial Corp, the largest U.S. subprime mortgage lender, reduces lending;
The second-largest subprime mortgage lender in the U.S. New Century Financial issues a profit warning;
March 13, 2007
New Century Financial announces it is on the verge of bankruptcy;
U.S. stocks plunge, with the Dow down 2%, the S&P down 2.04% and the Nasdaq down 2.15%;
April 4, 2007
After laying off half of its workforce, New Century Financial files for bankruptcy protection;
April 24, 2007
U.S. home sales fall 8.4% in March;
June 22, 2007
U.S. stocks retrace their highs, with the Dow down 1.37%, S&P down 1.29%, and the Nasdaq down 1.07%;
July 10, 2007
S&P downgrades subprime mortgage bonds, sending shockwaves through global financial markets;
July 19, 2007
Bear Stearns' hedge funds on the verge of disintegration;
August 1, 2007
Macquarie Bank declares that investors in two of its high Yield Funds Investors Face 25% Losses;
August 3, 2007
Bear Stearns Says U.S. Credit Markets in Worst Shape in 20 Years;
European and U.S. Stock Markets All Plunge
August 5, 2007
Bear Stearns President Warren Spector, the fifth-largest investment bank in the U.S., resigns;
August 6, 2007
Real estate investment trust American Home Mortgage files for Chapter 11 bankruptcy protection;
August 9, 2007
Most of the world's stock indexes fall after BNP Paribas, the largest bank in France, announces it is involved in subprime debt in the U.S.
Metal crude oil futures and spot gold prices dive sharply;
August 10, 2007
European Central Bank intervenes as U.S. subprime crisis spreads;
August 11, 2007
Central banks around the world inject more than $326.2 billion to bail out the market in 48 hours;
Federal Reserve injects $38 billion into banks three times a day to stabilize stock markets;
August 14, 2007
Wal-Mart and Home Depot and dozens of other companies announce huge losses due to the subprime debt crisis;
U.S. stocks soon plummet to multi-month lows in response;
August 14, 2007
Three major U.S., European, and Japanese central banks inject another bailout of more than $72 billion;
Asia-Pacific central banks again injects money into the banking system;
Economies may delay interest rate hikes;
August 16, 2007
Shares of the nation's largest commercial mortgage lender plummet, facing bankruptcy;
Asia-Pacific stocks suffer worst fall since 9/11 as U.S. subprime debt crisis worsens;
August 17, 2007
Fed lowers window discount rate by 50 basis points to 5.75%;
August 20, 2007
Bank of Japan injects another 1 trillion yen into the banking system;
European Central Bank proposes to step up bailout efforts;
August 21, 2007
Bank of Japan injects another 800 billion yen into the banking system;
Australian Federal Reserve injects A$3.57 billion into the financial system;
August 22, 2007
Federal Reserve injects another US$3.75 billion into the financial system;
European Central Bank refinances operations by an additional 40 billion euros;
August 23, 2007
British Central Bank lends commercial banks 314 billion pounds in response to the crisis;
Fed injects another $7 billion into the financial system;
Aug. 28, 2007
Fed injects another $9.5 billion into the financial system;
Aug. 29, 2007
Fed injects another $5.25 billion into the financial system;
Aug. 30
Fed injects another $10 billion into financial system;
August 31, 2007
Bernanke says Fed will work to prevent credit crisis from hurting the economy;
Bush promises administration package to rescue subprime mortgage crisis;
September 1, 2007
U.K. banks suffer cash starvation;
September 4, 2007
BIS and S&P disagree on severity of subprime crisis;
September 18, 2007
Federal Reserve cuts federal funds rate by 50 basis points to 4.75%;
September 21, 2007
A run on Britain's Northbrook Bank leads central bank governor King and Chancellor of the Exchequer Darling to the defense table;
September 25, 2007
The IMF notes the far-reaching effects of the U.S. subprime mortgage turmoil, but the agency also argues that governments shouldn't over-regulate;
October 8, 2007
European Union convenes two-day meeting of finance ministers that focuses on the U.S. economic slowdown and dollar devaluation;
October 12, 2007
The U.S. Treasury Department, in the spirit of addressing the subprime mortgage crisis, begins to talk broadly about improving the regulatory structure;
October 13, 2007
The U.S. Treasury Department helps major financial institutions set up a $100 billion fund (the Superfund) to buy up troubled loans. Superfund) to buy troubled mortgage securities;
October 23, 2007
The American Bankruptcy Institute announced that the number of consumers filing for bankruptcy in September increased 23% year-over-year to nearly 69,000;
October 24, 2007
Driven by the subprime crisis, Merrill Lynch, the world's top brokerage firm, announced a '07 loss of $7.9 billion in the third quarter, a day after Nomura Securities, Japan's largest brokerage, also announced a loss of $620 million for the quarter;
October 30, 2007
Europe's largest bank by assets, UBS, announced its first quarterly loss in nearly five years to reach 830 million Swiss francs in the third quarter as a result of subprime mortgage-related asset losses;
2007 November 9
After nearly two months, the three biggest banks, Bank of America, Citibank and Morgan Stanley, agree to put up at least $75 billion to help the market out of the subprime crisis;
November 26, 2007
Bank of America begins to lead Citibank and JPMorgan Chase in raising $80 billion for the Superfund;
November 28, 2007
U.S. housing market indicators deteriorate across the board;
National Association of Realtors claims October home sales fell for the eighth straight month to an annual rate of 4.97 million, while housing inventory increased 1.9% to 4.45 million
The S&P/Hiller National Home Price Index fell 1.7% quarterly in the third quarter, the index's 21 year history largest single-quarter drop in the index's 21-year history
December 4, 2007
Investment giant Warren Buffett begins buying $2.1 billion of junk bonds issued by Texas utility TXU
December 6, 2007
The Mortgage Bankers Association reports that foreclosures climbed 0.78 percent in the third quarter
2007 December 7
President George W. Bush decides to freeze some mortgage rates for the next five years
December 12, 2007
The five central banks of the U.S., Canada, Europe, the U.K. and Switzerland announce a joint bailout including short-term markdowns, foreign exchange swaps and more
December 14, 2007
In an effort to avoid a cheap sell-off , Citigroup consolidates SIVs into on-book assets
December 17, 2007
European Central Bank guarantees funding to euro-area financial institutions at a fixed interest rate
December 18, 2007
Fed submits package of reforms in response to subprime mortgage turmoil
European Central Bank announces an additional $500 billion to the euro-area banking system Provides about $500 billion in two-week loans
December 19, 2007
Fed's regular tender tool injects $20 billion in 28-day funds into market
December 21, 2007
Superfund manager BlackRock announces that no more super funds are needed
December 24, 2007
Wall Street investment bank Merrill Lynch announces three sale agreements to ease funding woes
December 28, 2007
Wall Street investment bank Goldman Sachs predicts that Citi, JPMorgan and Merrill Lynch could charge off another $34 billion in subprime marketable securities
2008
January 4, 2008 January 16, 2008
Consumer credit defaults intensify as late payments rise to highest since 2001, ABA data show
January 16, 2008
Ratings firm Moody's predicts SIV bondholders lost 47% of their assets
January 17, 2008
Subprime losses are so bad that S&P Ratings begins implementing a new method of evaluating bond insurers
Bush administration intends to deregulate Freddie Mac and Fannie Mae
U.S. new home starts fell 14.2% in December 2007 to an annual rate of 1,006,000, the lowest in 16 years
January 21, 2008
Britain's Treasury asks companies interested in acquiring Northcross Bank to submit detailed proposals by Feb. 4
January 22, 2008
The Federal Reserve cuts interest rates by an emergency 75 basis points to 3.50 percent, the Fed's largest rate cut since the 1980s.
January 24, 2008
U.S. insurance regulators in New York seek $15 billion in financial aid for bond insurers
January 30, 2008
The Federal Reserve cuts interest rates by 50 basis points
February 1, 2008
U.S. nonfarm payrolls fell by 18,000 in January, the first decline since 2004
Feb. 9, 2008
Statement from G-7 finance ministers and central bankers says impact of subprime crisis has increased
Feb. 12, 2008
The six largest U.S. mortgage banks announced a "lifeline" plan to prevent foreclosures. "
Buffett willing to reinsure $80 billion of US municipal bonds
February 14, 2008
FGIC, the fourth-largest bond insurer in the US, has announced its willingness to spin off its business
February 18, 2008
Britain's decision to nationalize Northumbrook bank
February 19, 2008
The Federal Reserve unveils a proposal for new rules to prevent high-risk mortgages and the most comprehensive remedial measures taken since the outbreak of the subprime crisis
February 20, 2008
Germany declares that the Landesbank is in the midst of a subprime mortgage crisis
February 21, 2008
British Parliament approves nationalization of Northrop Bank
February 28, 2008
Fed Chairman Ben Bernanke claims to cut interest rates even if inflation accelerates
March 5, 2008
U.S. ADP employment drops by more than 20,000 in February, dollar hits new record low against the euro
March 7, 2008
The Federal Reserve announced two new measures to increase liquidity, first, a regular tender tool and second, a decision to begin a series of regular repurchase transactions
March 11, 2008
The Federal Reserve once again joined with the other four major central banks to announce the continuation of liquidity injections into the market, easing the pressure on the global money market
March 13, 2008
The U.S. Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke are among regulatory officials who will propose stricter regulations on bank capital
U.S. officials predict recession for the first time
March 14, 2008
U.S. investment bank Bear Stearns seeks emergency financing from JPMorgan Chase and the New York Federal Reserve, as concerns deepen about the health of the U.S. banking industry
March 17, 2008
The Federal Reserve unexpectedly announces a 25 basis point cut in the window discount rate to 3.25 percent
JPMorgan Chase agrees to buy Bear Stearns for about $240 million
March 19, 2008
The Federal Reserve announces a 75 basis point cut in interest rates and hints at further rate cuts
March March 20
Bank of England meets with senior executives of five major investment banks and makes first statement that it will provide more financial assistance to domestic banks
March 24, 2008
Federal Housing Finance Board allows the Federal Home Loan Bank System to increase its holdings of more than $100 billion of MBS issued by Freddie Mac and Fannie Mae
2008 March 27
European money market liquidity is again in short supply, with the Bank of England and the Swiss Central Bank joining forces to inject funds
The Federal Reserve has made $75 billion of public debt available to primary dealers through the Term Securities Lending Instrument (TSLI)
British Prime Minister Gordon Brown and French President Nicolas Sarkozy met to discuss ways to improve financial market transparency and urge reforms at major international financial institutions
The Federal Housing Finance Board has allowed the Federal Home Loan Bank System to increase its holdings of MBS issued by Freddie Mac and Fannie Mae. p>
March 31, 2008
U.S. Treasury Secretary Paulson will submit a reform bill to Congress to strengthen mixed industry regulation
U.S. President George W. Bush and British Prime Minister Gordon Brown agree to strengthen cooperation in dealing with financial market turmoil
April 8, 2008
IMF says global subprime lending lost a trillion dollars
April 9, 2008
For the first time, the International Finance Association, on behalf of the global banking giants, publicly acknowledged responsibility in the credit crisis
April 10, 2008
Goldman Sachs again announced layoffs, and UBS predicted that Wall Street firms may have to cut up to 35 percent of their workforces
The U.S. Senate passed a housing-market rescue package valued at more than $4.1 billion Billion Dollar Housing Market Rescue Package
Goldman Sachs CEO Says This Credit Crisis May Be Nearing End
April 11, 2008
Japan's Mizuho Financial Group forecasts Mizuho Securities' subprime mortgage-related trading losses at 400 billion yen (US$3.9 billion)
April 2008 April 12-13
The Group of Seven (G7) and the International Monetary Fund (IMF) held a two-day meeting to express concerns about the current financial market shocks and call for tighter financial regulation
April 14, 2008
Deutsche Bank plans to sell up to $20 billion of leverage-related debt to private equity firms
April 15, 2008
Britain's RICS house price index fell to a 30-year low of -78.5 in March, below expectations of -67.5
Analysts at JPMorgan Chase say this global credit crisis, is likely to continue to affect the market for the next 10 years
Singapore's Investment Board intends to take part in UBS's CHF15 billion Financing plan
Citigroup vice president William Rhodes claims the US economy is approaching the center of the storm and may be in a recession
OECD predicts global subprime losses of $350-$420 billion
RealtyTrac Inc. reports a 57% rise in U.S. home foreclosures in March
British banking industry urges government to intervene in market to prevent smaller financial institutions from failing and to secure sources of new lending
April 16, 2008
Brown travels to U.S. to seek international solutions to credit crisis and other issues
U.S. new housing starts plummet 11.9% in March to lowest level in 17 years
Fed's Beige Book points to various regions' lending standards as demand for loans falls
JPMorgan Chase reports better-than-expected quarterly report, declares subprime lending will end and plans to raise $6 billion in capital
April 17, 2008
Merrill Lynch & Co. reported a larger-than-expected first-quarter net loss of $1.96 billion, and its third consecutive quarterly loss. The company's first-quarter asset write-downs totaled more than $6.5 billion and it will lay off another 3,000 workers, expecting "tougher conditions" in the months ahead
April 18, 2008
Citigroup announced a net loss of $5.11 billion, or a loss of 1.5 billion per share, for the first quarter, after eliminating more than $13 billion in losses. billion, or a loss of $1.02 per share
Tokyo-based Mitsubishi UFJ Financial Group expects losses related to subprime lending of 95 billion yen ($921 million)
LIBOR jumped 20 basis points last week, signaling that the Federal Reserve's April 2008 will roll out more interest rate cuts in addition to its 25 basis point moves
April 20, 2008
Merrill Lynch chief executive Sain claims to disagree with the view that the most difficult period of the credit crisis is over
April 21, 2008
The balance sheets of the bank's large lenders have been severely impacted by the credit crunch, and in order to cope with this mounting pressure, RBS will plan to raise 12 billion pounds ($24 billion)
The Bank of England has announced that it will use 50 billion pounds of government bonds to swap collateralized assets held by commercial banks in order to help the banking sector recover
The Financial Times is reporting that in the face of woes brought on by the credit crunch, the Bank of America is planning to sell its holdings in the China Construction Bank to raise money to bolster its asset balance sheet
European Central Bank President Jean-Claude Trichet says the market correction is not over as banks are still reluctant to lend
April 22, 2008
Fed Governor Krozner notes that a lending modification will probably solve some of the problems in the mortgage market
Japan's former senior Cabinet Office official Hiroshi Watanabe has noted that Asian governments should Japan's former Cabinet Secretary Hiroshi Watanabe said Asian governments should build up $100 billion in foreign exchange reserves by 2010 to prevent a repeat of a regional financial crisis like the one in 1998
Robert Shiller, a leading Yale economist, warned that U.S. home prices could fall even more sharply than they did during the Great Depression, and that the government should take bailout action to prevent millions from losing their homes
.U.S. home sales fall 2.0% to 4.93 million in March
Swiss central bank puts $6 billion on the market
European Central Bank lends banks $15 billion in 28-day dollar funds
April 23, 2008
Bernard Baumer, managing director of the Economic Outlook Group, points out that the U.S. economy is in serious trouble and is unlikely to see a V-shaped recovery. Unlikely to get V-shaped recovery
The number of home loan permits in the UK fell to a record low of 35,417 in March from 43,147 in February. Outlook for U.K. housing market not optimistic
Germany's Duesseldorfer Bank to be taken over by Deutsche Bank Association
U.S. House Financial Services Committee approves local governments across the country to acquire homes that have been exercised in foreclosure
April 24, 2008
The 3-month euro Libor rose again on Thursday, hitting a 4-month high , indicating continued tightness in the money markets
Risin's financial position turned from profit to loss in the first quarter as a result of a 5.3 billion Swiss franc asset impairment, bringing the net loss to 2.15 billion Swiss francs
Bank of Canada injects C$495 million into the market through special purchase with attached sell-back agreement
New York Federal Reserve announces treasury auctions under the expanded range of term securities borrowing and lending instruments Demand was weak, with total **** receiving $59.46 billion in subscriptions, down from $75 billion in bids
The U.S. Treasury Department said it will begin implementing the special refunding policy next Monday, five days earlier than the Treasury had previously expected
U.S. commercial banks increased the size of their borrowing at the Fed's discount window this week, while investment banks reduced their use of the financing tool The focus of the credit crunch has shifted from brokerage firms to depository institutions
UK's Northcross is likely to decide to lay off 2,000 workers following the announcement of its nationalization
April 25, 2008
The US dollar index rallied to a new 1-month high as market expectations increased that the Fed's rate-cutting cycle would end
US new home sales fell further in March in March, lowest level since 1991
U.S. consumer confidence hits lowest level since March 1982 in April
April 28, 2008
Famous investor Warren Buffett claimed that the U.S. economy is in a recession and the extent of it will be more severe than most people expect.
The U.S. Census Bureau releases a report showing that the annual U.S. home vacancy rate set a new record high of 2.9 percent in the first quarter of 2008.
April 29, 2008
The number of mortgages licensed for house purchase in Britain fell in March to the lowest level since the data began to be counted.
Deutsche Bank announces its first net loss since 2003
April 30, 2008
The Federal Reserve cuts interest rates by 25 basis points and removes the phrase "economic growth remains at risk" from its post-meeting statement
U.S. GDP grows 0.6% in the first quarter, but Credit Suisse says the rate is still below its target. 0.6%, but Credit Suisse says it relies heavily on increased inventories, which is not good for future growth
UK's HBOS issues an additional ￡4 billion of equity to boost capitalization against deteriorating market conditions
May 1, 2008
Bank of England's Financial Stability Report says subprime losses could be as little as $170 billion; major banks agree to a special liquidity plan. Banks Agree to Retain Minimum Asset Levels in Special Liquidity Programs
Federal Deposit Insurance Corporation Sees Markets Coming Through Credit Crunch
Federal Reserve Chairman Ben Bernanke Sees Problems in U.S. Student Loan Market Going Beyond Just Liquidity Issues
U.S. House of Representatives Approves $300 Billion Housing Market Assistance Program
U.S. Treasury Secretary Paulson thinks credit crisis is half over
May 2, 2008
U.S. nonfarm payrolls fell by just 20,000 in April, and the unemployment rate fell to 5.0%, a better-than-expected result
IMF Chairman Kahn worries that the good U.S. jobs report in April is short-lived, and thinks the economy won't recover in 2008
The Federal Reserve expanded the size of the TAF from $50 billion to $75 billion. from $50 billion to $75 billion, while expanding currency swaps with the ECB and Swiss central bank
White House says U.S. economy has not signaled a recession so far
British Halifax house prices fell for the third month in a row in April, dropping 1.3% on a monthly basis and 3.7% on an annual basis
May 4, 2008
US FHFB points out that interest rate cuts and tax cuts alone cannot solve the subprime problem, and that the US government must act aggressively
May 5, 2008
Former IMF chairman Lato points out that the most difficult period of the credit crisis is over, and that the US dollar's rebound in 2008 is normal
US ISM non-manufacturing index in April was 52.0 , with a median estimate of 49.1, also at its highest level since December 2007
The Federal Reserve injected $11 billion in temporary reserves into the market through an overnight repo operation
Berkshire Hathaway Investments President Warren Buffett believes there is no need for the Federal Reserve to cut interest rates any further in the future
The Federal Reserve's survey showed that due to concerns about an increasingly gloomy economic outlook, the U.S. banking industry continues to tighten standards and conditions for business and consumer lending
Former Federal Reserve Chairman Alan Greenspan says it was too early to judge the credit crisis triggered by the collapse of the subprime mortgage market in May 2008 as over
Fed Chairman Ben Bernanke expects the U.S. housing market to deteriorate further and jeopardize the overall economy
May 6, 2008
May 6, 2008
U.S. Treasury Department. /p>
U.S. Treasury pressures lenders to speed up mortgage resolution
Wall Street's big three - Morgan Stanley, JPMorgan Chase and Lehman Brothers - all plan to streamline their workforces in May 2008
The Federal Reserve has offered 28-day TAFs totaling $75 billion
Fannie Mae announced a loss of $2.19 billion, or $2.57 per share, for the first quarter of 2008, and expects losses to continue to worsen next year
U.S. House Speaker Nancy Pelosi calls for a second round of stimulus
UBS, Europe's largest bank by assets, confirmed that it posted a first-quarter loss of 11.54 billion Swiss francs, dragged down by a huge asset write-down ( 10.99 billion dollars) loss. The bank also announced 5,500 job cuts by mid-2009
May 7, 2008
Former U.S. Treasury Secretary Snow said the U.S. is nearing the end of the interest rate-cutting cycle, but the economy will continue to slow down
U.S. Treasury Secretary John Paulson said U.S. financial markets are gradually recovering from the credit crunch and that the worst of the credit crisis may be over, but it will take several years for the market problems to be fully resolved. But full resolution of the market's problems is still months away
Fed's Horn hints interest rates are close to target level for adjustments
Fed official Krozner says Fed takes housing market very seriously
U.S. NAR index of contracted sales of homes fell 1.0 percent to 83.0 in March, unchanged from expectations
The U.S. House of Representatives is set to debate a Democratic plan to save the housing market. housing rescue plan, which supports an eventual government buyout of up to $15 billion in foreclosed homes and provides help to some 500,000 homeowners facing foreclosure; but the White House threatens to veto the plan
May 8, 2008
U.S. Treasury Secretary Paulson expects the U.S. economy to accelerate later in 2008, with a rebate check to help get it out of the red immediately
Former Federal Reserve Chairman Alan Greenspan says the worst phase of the credit crisis is over, but there's still a long way to go for home prices to fall
Europe's two biggest central banks have both announced that they are keeping interest rates on hold in a bid to fight inflation
U.S. initial jobless claims fell by 18,000 to 365,000 in the May 3 week. The result was better than expected
U.S. wholesale inventories fell an unexpected 0.1 percent monthly in March
The U.S. House of Representatives passes a bill that would create a $300 billion mortgage insurance fund and provide billions more in grants to homeowners
July 2, 2008
In New York stock markets, the largest U.S. automaker General Motors shares fell below the $10 mark at the close to close at $9.98, the lowest price since Sept. 2, 1954
July 12, 2008 Shares fall to lowest in 50 years as bankruptcy looms for GM
September 15, 2008
A more serious financial crisis is on the horizon as Lehman Brothers, the fourth-largest U.S. investment bank, falls into a serious financial crisis and announces it has filed for bankruptcy protection.
The European Central Bank (ECB) announced on the same day that it had injected 30 billion euros into the commercial banking system*** for one day, at an average interest rate of 4.39 percent, higher than the ECB's leading rate of 4.25 percent. This is the first time the ECB has taken this intervention since the crisis in the global financial markets in the summer of 2007.
September 20, 2008
The Bush administration formally submitted a bill to the U.S. Congress to rescue the financial system, and the Treasury Department will be authorized to buy up to $700 billion in distressed home mortgage assets.
The U.S. government wants to get all the problems out of the way within 2 years, hoping to fix the problem before it affects the real economy and avoids a Great Depression like the one in the 1930s.
September 22, 2008
Germany's Finance Minister Steinbrück said after a telephone consultation with the finance ministers and central bank governors of the Group of Seven Western nations that the other members of the G7 refused to participate in the U.S. financial rescue plan.
September 25, 2008
The nation's largest savings and loan bank, Seattle-based Washington Mutual Inc. has been seized and taken over by the U.S. Federal Deposit Insurance Corporation (FDIC) on Thursday (25) local time. ) seized and taken over, making it the largest bank ever to fail in the United States.
September 29, 2008, the U.S. House of Representatives rejected the $700 billion bailout package, U.S. stocks fell sharply, the Dow plunged 777 points, the largest point drop in history, a one-day drop of up to 7%, but also since the 1987 global stock market crash is the largest drop. Market confidence is weak and the Dow is sinking, with the 10,000-point mark in jeopardy.
30, the U.S. House of Representatives rejected the $ 700 billion bailout plan, while the Senate tried to salvage it and is scheduled to vote on it Wednesday.
On October 2, 2008, the U.S. Senate voted 74 to 25 to pass a new version of the $700 billion bailout package proposed by the Bush administration. The U.S. Senate voted to raise the total amount of the bailout package from $700 billion to $850 billion, adding provisions for extending the tax cuts and raising the cap on bank deposit insurance to $250,000 from $100,000 in 2008, in an effort to placate the economy. The package includes provisions to extend the tax cuts and raise the cap on bank deposit insurance from $100,000 to $250,000 in 2008, with the aim of calming the nervous American public and supporting economic growth. It is expected to help stock markets around the world and will put pressure on the House of Representatives, where some lawmakers are considering shifting their support to the bill.
The major central banks acted simultaneously on Oct. 8 to respond definitively to the turmoil in the financial markets, announcing rate cuts one after another.
The Federal Reserve announced a 50 basis point rate cut to 1.5 percent, and the European Central Bank, Bank of England, Bank of Canada, Bank of Sweden and Bank of Switzerland also cut rates by 50 basis points.
On the afternoon of Oct. 7, local time in Australia, the Reserve Bank of Australia (RBA) cut its benchmark bank rate by 1 percent to 6.00 percent
The Bank of Israel (BoI) also announced a 50-basis-point cut in interest rates to 3.75 percent, with the new rate taking effect on Oct. 12 due to the sharp drop in global financial markets.
Oct. 9
Following in the footsteps of the U.S., the relevant authorities in South Korea, Japan, Hong Kong, China, Taiwan and Indonesia, have taken steps to loosen monetary policy and inject capital into banks.
October 10, 2008
Iceland basically froze its foreign currency assets and nationalized its three major banks because of the subprime mortgage crisis, but has been involved in diplomatic disputes with the United Kingdom and other countries over debt.
November 15, 2008
The 2008 G20 summit is held in Brazil, and the meeting focuses on the topic of dealing with this subprime mortgage crisis.
December 11, 2008
The U.S. auto trio will receive $15 billion in aid, and executive pay will be limited
December 16, 2008
ICE futures rose slightly after the Federal Reserve cut the benchmark dollar interest rate to 0-0.25 percent, beating market expectations of 0.5 percent.
2009
January 14, 2009 Nortel Networks, North America's largest maker of telecommunications equipment, files for Chapter 11 bankruptcy protection
January 16, 2009 The European Central Bank cuts interest rates again to a record low
February 5, 2009 The Bank of England announces another interest rate cut, the fifth in a row and the fifth in the UK since the December 2007 when it cut rates for the eighth time.
March 2, 2009, the U.S. Dow Jones industrial average stock price index closed at 6,763.29 points, the lowest closing level since April 1997, which also means that the market value of the Dow Jones index has shrunk by more than half in just one and a half years. Stimulated by this, 3 Asian stock markets generally opened tumbling. Japan's Nikkei index in early trading once down to 7117.66 points, fell to the lowest point after the collapse of the bubble economy. Although the decline slowed down after lunchtime, but the Nikkei still closed with a loss of 0.69%; China's Shanghai index fell 1.05%; Hong Kong's Hang Seng index fell 2.3%.
The historic quarterly loss announced by American International Group (AIG) on February 2 was the last straw for the U.S. stock market, which suffered a $61.7 billion loss in the fourth quarter of 2008, the most in the history of U.S. companies.
On June 1, 2009, GM filed for bankruptcy protection.
To this point the crisis spread to the real economy, to the economic crisis, the next are countries to carry out monetary and fiscal policies to save the market.