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Financial crisis timeline
The financial crisis has spread all over the world, due to several related incidents, which have had adverse affects on the global economy. If you study the entire events starting from the beginning of this year, you would be able to spot a marked change in the field of economy. We could start of with the timeline of financial crisis from the time the American markets took a jolt, in its trade center. From then onwards the condition has seemingly improved considerably, and was hoped to do even better in the recent times. The crisis phase of 2001 had been completely forgotten due to the booming real estate industry, which was making more money and proving to the economical growth in several aspects. It started of a chain of profits, based on the evidence of simple financial derivatives. The banks started making profit and they kept lending out and investing in business, until recently when the Bear Stearns was taken over by JP Morgan Chase. This even occurring in March followed soon after the arrest of several individuals on the fraudulent mortgage cases. This incident followed several other occurrences, in which President Bush had to sign in the Housing and Recovery Act of 2008, by the end of July. The condition did not seem to pull up; instead it grew worse as the bankers held onto their falling mortgages, hoping for a recovery. A time arrived when the value plummeted so low that the value they would get was worth nothing at all. By September 7th situation seemed to darken further, as the huge entities like that of Freddie Mac and Fannie Mae, having half of the mortgage stakes, was taken over by the Feds and nationalized. If people thought that it was the end, they were very wrong as by September 14th Lehmann Brothers had collapsed and the Merrill Lynch was sold over to the Bank of America. Even the AIG group was under trouble and the condition would be disastrous, if it too collapsed, as the impact then would have a strong ripple effect over the world economy. The government immediately set out and sanctioned $85 billion to crisis laden company for its recovery. This was not the end of it and looking over the huge financial crisis at hand, the Government of America has decided to put forward the sum of $700 billion to aid the financial crisis condition. Through this policy, the head of the Federal Reserve would have the authority to mobilize this amount over to the banks to get them out of their crisis.


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