Crisis
United States
2007 to 2009 Recession

More About 2008 Financial Crisis

  • The price of many commodities (especially industrial metals) dropped significantly
    • A collapse in US real estate construction was a big factor
  • Was accelerated by  a slowdown in Chinese Construction Projects

  • The Federal reserve and FDIC extended FDIC insurance to 100% of bank deposits (previously was limited to a maxim of 250,000 per account)
Federal Reserve Response
  • Bought long-term assets to push long-term interest rates lower during and after (Quantitiate Easing)
  • Set its overnight lending rate to 0%.
  • After the 2008 Meltdown, the balance sheet grew by 1.4 Trillion in just 94 days (under Ben Bernanke)
    • Cause a reflation and recovery of financial markets
    • Reshaped how the US financial system looks since

Key Sub Events

  • 9/29/2008 : US House of Representatives rejected a bank bailout (Monday)
  • 10/3/2008 : US House passes $700 billion bailout bill (Friday)
    • Some representatives say they were told that the stock market would crater without this bailout


Also Commonly Referred to As:
  • The 2008 Meltdown
  • The Panic of 2008
  • 2008 Financial Panic
  • Global Financial Crisis of 2008-09
  • Great Financial Crisis (GFC)