Meltdown of '07-'08 By jessicagunder Aug 5, 2007 Housing Market Starts to Crash By summer '07 the housing market is in trouble. Prices are falling and inventories and foreclosures are rising. Mar 10, 2008 Bear Stearns Rumors Start Rumors that Bear Stearns is in trouble starts circulating on March 10, 2008. Mar 20, 2008 Alan Schwartz Talks Bear's CEO, Alan Schwarts, goes on CNBC and is confronted with the question of whether or not Bear's most important client Goldman Sachs is beginning to desert the firm. Mar 22, 2008 Government comes up with a solution The Race to find a buyer. Prohibited from directly lending to Bear, The Fed works out a plan to loan money to JP Morgan who in turn will loan the money to Bear. May 8, 2008 Too Big to Fail? Treasury Secretary Henry Paulson sends a message that "Financial Institutions Must Be Allowed to Fail" Bear Stocks sell for $2 a share. May 15, 2008 Fannie & Freddie start going down Fannie and Freddie the world's largest mortgage lenders are hammered by losses related to the housing crisis. In mid-July their stocks fall more than 60 percent. May 19, 2008 Fed Takes Over Fed takes control of Fannie and Freddie Jun 5, 2008 Lehman starts going as well Lehman's Stock plunges 45%. They had made billions in the now-toxic, high risk real estate market and couldn't secure extra financing from other banks. They had no success. Jun 8, 2008 No Bailout for Lehman Concerned about moral hazard, Paulson makes clear that there will be no bailout for Lehman. Jul 5, 2008 Lehman goes Under After Lehman goes under, the stock market nosedives and global credit markets freeze. Aug 6, 2008 Rescue Plan Paulson and Bernanke go to Congress to present a rescue plan to congressional leadership. "If we don't do this, we may not have an economy on Monday," warns Bernanke.