Great Recession/Timelines

The 1980s
Financial deregulation ,.

Savings and Loans crisis - failure of 296 US "Savings and Loans" mortgage lenders

1990 - 2003

 * Progressive discount rate cuts by Federal Reserve Bank (from 7% in 1990 t0 0.75% in 2003.


 * The United States housing boom begins (prices rise by 8% between 2002 and 2003)

2003 - 2006

 * The Federal Reserve makes a series of discount rate increases (from 0.75% to 6.25% in 2006).


 * The US housing boom continues (Average 2006 house price about  70% above 2000 level)

June
25 Two of the Bear Stearns Bank's suffer losses from mortgage defaults.

August
6 The American Home Mortgage Corporationgoes bankrupt.

9 The French bank BNP Paribas freezes its  funds because it is unable to value their mortgage-backed assets. 

January
US mortgage lender Countrywide is sold to Bank of America after its share price drops by 48%.

March
The Bear Stearns bank is rescued following losses relating to mortgage-related assets by its hedge funds. 

June
US house prices fall to 20% below their 2006 peak.

August
The government-sposores mortgage lender Fannie Mae and Freddie Mac are rescued.

September
7 Fannie Mae and Freddie Mac are nationalised.

12 The Lehman Brothers investment bankgoes  bankrupt with losses of up to $160 billion to holders of its unsecured bonds.