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Motgage Companys Give Out Subprime Loans
Motgage companys like Bear Stearns where giving out loans on mortgages to people who could never pay them back. -
Fear Spreads
Fear spreads to people who have loans and the governments after rumors of an economic collapse is put out to the public. -
Ben Bernanke Takes Action
The chairman of the Federal Reserve Ben Bernanke makes a plan betweetn Bear Stearns and JPMorgan. This plan stated that the federal government would used $30 billion to cover Bear Sterns toxic mortgages. -
Henry Paulson of the Treasury Agrees...Kinda
Henry Paulson agreed to help bailout the giant comopany Bear Stears but sent out a warning to other companys like thyem that they should not expect future government bailouts. -
Fannie Mae and Freddie Mac begin to Fall
Fannie Mae and Freddie Mac, another large mortgage compnay begins to collapse months after Bear Sterns. -
Lehman Borthers Near Collapse
Within days Lehman Brothers accounces they are near bakrupcy and calls to Bernanke and Paulson to help bail them out like they did with Bear Stearns. -
Paulson Under Pressure
Henry Paulson was under political pressure from other failing mortgage companys and the federal government after bailing out Bear Stearns. He urges Lehman Brothers CEP Dick Fuld to find a buyer for his failing company before it was too late. -
No Bailouts!
The federal government urged Paulson and Bernanke to invoke moral hazard and let these companys fail. -
Please Buy My Company :(
Dick Fuld was unable to sell his company because he did not recieve a bailout similar to Bear Sterns and his company failed. -
$700 Billion Bailout
Paulson and Burnanke proposed a $700 billion bailout to congress to bailout these large companys.
