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Bear Sterns Hedge Fund Collapses
The Bear Sterns Hedge Fund Collapses. This had a rapid effect on other parts of the financial markets worldwide which reached the crisis level and the number of foreclosures for sale in August-September of this year and temporarily froze the money market sector that is critically important to banking and financial operations. When this took place, the Federal Reserve Bank and European Central Bank dumped $100-billion in liquidity into the system that calmed the market down for a short period. -
Banks Freeze
Banks became afraid to lend to each other because they didn't want these toxic loans as collateral. This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. -
Recession Officially Begins
The U.S. National Bureau of Economic Research officially declares that the United States' economy is in recession. -
Period: to
The Great Recession of the 2000's
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The Economic Stimulus Package
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama. To respond to the late-2000s recession, the primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for -
Unemployment Rises
Unemployment rate rises to 10.1 percent. -
The International Labour Organization Predicts Employment Decline
The International Labour Organization (ILO) predicted that at least 20 million jobs will have been lost by the end of 2009 due to the crisis — mostly in "construction, real estate, financial services, and the auto sector" — bringing world unemployment above 200 million for the first time.[17] The number of unemployed people worldwide could increase by more than 50 million in 2009 as the global recession intensifies, the ILO has forecast.
