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Deeman3
09-20-2010, 10:41 AM
<span style="color: #FF6666"> Well, I guess Obama was right! All you nasayers who did not participate in the Summer of Recovery should be ashamed.

Health care ahs reduced costs and ensured million of new Mexicans and unemployment is now under control. I do appoligize for my former pessimissim in the situation.

Now we can really spend the money! /forums/images/%%GRAEMLIN_URL%%/smile.gif</span>


The “Great Recession” has ended, officially.

At least, that's the word from the private research organization that calls the beginnings and endings of recessions, the National Bureau of Economic Research.

The NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion. The announcement rules out the possibility of a so-called “double-dip” recession, because any new downturn would be seen as a brand new recession.

President Barack Obama said that even though the NBER officially named an end to the recession, the economy has a long way to go and much work to be done to become healthy again. "Something that took ten years to create is going to take a little more time to solve," Obama said at a town-hall-style meeting shown live on CNBC.

The NBER said it chose the June 2009 date based on examination of data including gross domestic product, employment and personal income.

"The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months," the NBER added in a press release on its website.

Just because the recession ended 15 months ago, it doesn't mean that the economy is healthy, the NBER asserted. "Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion," the NBER said.

jimmyg
09-20-2010, 11:04 AM
Reality questions:

1) Does that mean since June '09 foreclosures have not increased?

2) Personal bankruptcies have not increased?

3) Business bankruptcies have halted?

4) True unemployment has improved?

5) Job creation has begun?

6) US debt has been reduced?

7) Food stamp issuance is not at a record high?

8) The dollar has not continued to collapse?

9) The FED no longer has to penalize the savers and keep interest rates at an artificially low 0%?

10) Home prices have not continued to fall?

11) No more economic stimuli is required to keep GNP in the black?

12) American jobs return from China?

13) America no longer needs to borrow $trillions from China, Japan & Russia in order to stay solvent?

14-25 in reserve)

What exactly does the declaration that the recession ended in June '09 do for the average broke, and out of work, American?

J

pooltchr
09-20-2010, 11:49 AM
Don't question the government economists! They know better than you!

(Of course, all government financial numbers are subject to be corrected at a later date!)

Steve

Deeman3
09-20-2010, 12:10 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jimmyg</div><div class="ubbcode-body">
What exactly does the declaration that the recession ended in June '09 do for the average broke, and out of work, American?

J </div></div>

<span style="color: #FF0000">They can take comfort in the Hope and Change they voted for.

Today, Obama said the American Dream was still attainable! I think he means for him and a few of his fellow politicians as well as the growing ranks of government slugs with their outlandish retirement accounts that will be paid by the ones who are no longer qualified for the American Dream. </span>

jimmyg
09-20-2010, 12:24 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: jimmyg</div><div class="ubbcode-body">
What exactly does the declaration that the recession ended in June '09 do for the average broke, and out of work, American?

J </div></div>

<span style="color: #FF0000">They can take comfort in the Hope and Change they voted for.

Today, Obama said the American Dream was still attainable! I think he means for him and a few of his fellow politicians as well as the growing ranks of government slugs with their outlandish retirement accounts that will be paid by the ones who are no longer qualified for the American Dream. </span> </div></div>

Now I understand, "hope, lies, and more hope", thanks!

J

LWW
09-21-2010, 02:59 AM
The recession is over untill the next bit of bad news which will then be Bush's fault.

If the far left honestly believed the recession ended over a year ago then they would by definition have to blame all bad news since then on the new regime. That is if they weren't brainwashed into the ideology of doublethink and blackwhite.

LWW

Sev
09-21-2010, 07:02 AM
The days of pass the buck are yet upon us.

Gayle in MD
09-21-2010, 07:10 AM
Hilarious! You righties denied we were even in a recession for a year after it happened, now you deny we're out of it.

Wrong Party in control, no doubt.

G.

Chopstick
09-21-2010, 07:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">Hilarious! You righties denied we were even in a recession for a year after it happened, now you deny we're out of it.

<span style="color: #000099">The recession you announced never occurred. Do not confuse it with the recession that your party caused.</span>

Wrong Party in control, no doubt.

<span style="color: #000099">You got that right. Both of them.</span>

G. </div></div>

Gayle in MD
09-21-2010, 07:50 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Chopstick</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">Hilarious! You righties denied we were even in a recession for a year after it happened, now you deny we're out of it.

<span style="color: #000099">The recession you announced never occurred. Do not confuse it with the recession that your party caused.</span>

Wrong Party in control, no doubt.

<span style="color: #000099">You got that right. Both of them.</span>

G. </div></div> </div></div>

That is absolutely absurd, Chop! Democratic policies did not cause the recession, to suggest that it happened due to Democratic majority, is absurd.

The President holds the VETO Pen, for one thing!

It was Republicans who broke the earmark record, remember????????

The stimulus worked. We're not in a BUSH Depression, we're recovery from the Great Bush Recession, which almost all economists have said was set in stone by the middle of 06, some even said it was more like late 05.

G.

pooltchr
09-21-2010, 09:09 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body"> Democratic policies did not cause the recession, to suggest that it happened due to Democratic majority, is absurd.



G. </div></div>

The Dems have controlled congress, and therefore, spending, for the past 3 years. To suggest they had nothing to do with it is complete insanity.

Steve

jimmyg
09-21-2010, 10:37 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: pooltchr</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body"> Democratic policies did not cause the recession, to suggest that it happened due to Democratic majority, is absurd. G. </div></div>

The Dems have controlled congress, and therefore, spending, for the past 3 years. <span style="color: #CC0000">To suggest they had nothing to do with it is complete insanity.</span> Steve </div></div>

Yes it it, isn't it? /forums/images/%%GRAEMLIN_URL%%/crazy.gif

J

LWW
09-21-2010, 03:48 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Chopstick</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">Hilarious! You righties denied we were even in a recession for a year after it happened, now you deny we're out of it.

<span style="color: #000099">The recession you announced never occurred. Do not confuse it with the recession that your party caused.</span>

Wrong Party in control, no doubt.

<span style="color: #000099">You got that right. Both of them.</span>

How true.

The moonbat crazy left was wailing and gnashing their collectivist teeth about the recession in 2004 when we were at sub 5% UE with strong GDP growth and a declining deficit.

Now with 9.5%+ UE, negative GDP growth, and a runaway deficit they wonder why nobody else is dancing in the street with them.

LWW
G. </div></div> </div></div>

Gayle in MD
09-22-2010, 07:55 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body">

<span style="color: #FF6666"> Well, I guess Obama was right! All you nasayers who did not participate in the Summer of Recovery should be ashamed.

Health care ahs reduced costs and ensured million of new Mexicans and unemployment is now under control. I do appoligize for my former pessimissim in the situation.

Now we can really spend the money! /forums/images/%%GRAEMLIN_URL%%/smile.gif</span>


The “Great Recession” has ended, officially.

At least, that's the word from the private research organization that calls the beginnings and endings of recessions, the National Bureau of Economic Research.

The NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion. The announcement rules out the possibility of a so-called “double-dip” recession, because any new downturn would be seen as a brand new recession.

President Barack Obama said that even though the NBER officially named an end to the recession, the economy has a long way to go and much work to be done to become healthy again. "Something that took ten years to create is going to take a little more time to solve," Obama said at a town-hall-style meeting shown live on CNBC.

The NBER said it chose the June 2009 date based on examination of data including gross domestic product, employment and personal income.

"The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months," the NBER added in a press release on its website.

Just because the recession ended 15 months ago, it doesn't mean that the economy is healthy, the NBER asserted. "Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion," the NBER said.
</div></div>

Old news. The recession ended in June. Ever seen a recession end with a booming economy?

We're still dealing with the last stubborn element to recover, jobs. That is always the case. We could have all been standing in a soup line, withint President Obama's actions.

Baby Boomers want what they want, when they want it. The Me generation.... /forums/images/%%GRAEMLIN_URL%%/crazy.gif

Some folks are just incredibly partial to the party which drove us into the ditch....but then, denial was their gameplan during the entire Bush/Republican Party Fiasco which caused the meltdown in the first place....

G.

jimmyg
09-22-2010, 01:42 PM
41 million families on food stamps (the new soup line).

7 million more foreclosures in the pipeline.

Students trapped in debt enslavement for years.

Official U-6 16.7% - true unemployment over 20%.

All that considering ZIRP and $trillions in bailouts.

Administration accomplishments...zero.

J

Deeman3
09-22-2010, 02:53 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD [/quote</div><div class="ubbcode-body">

Old news. The recession ended in June. Ever seen a recession end with a booming economy?

<span style="color: #FF0000"> Uh! That was June of 2009, not this June 2010.</span>

We're still dealing with the last stubborn element to recover, jobs. That is always the case. We could have all been standing in a soup line, withint President Obama's actions.

<span style="color: #FF0000"> We may still all end up there. With hundreds of billions spent to generate a few thousand jobs, not many will be generated. </span>

Baby Boomers want what they want, when they want it. The Me generation.... /forums/images/%%GRAEMLIN_URL%%/crazy.gif

<span style="color: #FF0000"> Most just want what they paid for and were promised. Not to be further robbed by additional taxes, deevaluation fo their money by monetary policy that borrows and prints it's way to excuse spending at levels never seen before for programs that have failed for generations. </span>

Some folks are just incredibly partial to the party which drove us into the ditch....but then, denial was their gameplan during the entire Bush/Republican Party Fiasco which caused the meltdown in the first place....

G. </div></div>

<span style="color: #FF0000">Maybe, but we have no chance of the Democrats not spending more and more and, perhaps, some of the tea party cnadiadtes are just crazy enough to turn the spiggot down a bit. </span>

LWW
09-23-2010, 03:49 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">Ever seen a recession end with a booming economy?

G. [/b] </div></div>

Actually, they almost always end with a booming economy.

Has anyone else noticed that they had to change the definition of recession to declare this one over?

LWW

Gayle in MD
09-23-2010, 03:05 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Chopstick</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Gayle in MD</div><div class="ubbcode-body">Hilarious! You righties denied we were even in a recession for a year after it happened, now you deny we're out of it.

<span style="color: #000099">The recession you announced never occurred. Do not confuse it with the recession that your party caused.</span>

Wrong Party in control, no doubt.

<span style="color: #000099">You got that right. Both of them.</span>

G. </div></div> </div></div>


2001-2006
2000–2003: Early 2000s recession spurs government action to rev up economy.[citation needed]
2000-2001: US Federal Reserve lowers Federal funds rate 11 times, from 6.5% (May 2000) to 1.75% (December 2001),[43] creating an easy-credit environment that fueled the growth of US subprime mortgages.[44]
2002-2006: Fannie Mae and Freddie Mac combined purchases of incorrectly rated AAA subprime mortgage-backed securities rise from $38 billion to $90 billion per year.[45][46][47]
Lenders began to offer loans to higher-risk borrowers,[48] Subprime mortgages amounted to $600 billion (20%) by 2006.[49][50]
Speculation in residential real estate rose. <span style='font-size: 20pt'>During 2005, 28% of homes purchased were for investment purposes, with an additional 12% purchased as vacation homes. During 2006, these figures were 22% and 14%, respectively.[51] As many as 85% of condominium properties purchased in Miami were for investment purposes which the owners resold ("flipped") without the seller ever having lived in them.[52]
2002–2003: Mortgage denial rate of 14 percent for conventional home purchase loans, half of 1997.[22]
2002: Annual home price appreciation of 10% or more in California, Florida, and most Northeastern states.[53]
June 17:President G.W. Bush sets goal of increasing minority home owners by at least 5.5 million by 2010 through billions of dollars in tax credits, subsidies and a Fannie Mae commitment of $440 billion to establish NeighborWorks America with faith based organizations.[54]
2003: Federal Reserve Chair Alan Greenspan lowers federal reserve’s key interest rate to 1%, the lowest in 45 years.[55]
August: Borio and White of Bank of International Settlements speak at the Jackson Hole Economic Symposium, referencing BIS's "Credit Risk Transfer" 2003 report which warned about problems with collateralized debt obligations and rating agencies. Their arguments are rejected or ignored by attendees, including Alan Greenspan.[56] </span>September: Bush administration recommend moving governmental supervision of Fannie Mae and Freddie Mac under a new agency created within the Department of the Treasury. The changes are blocked by Congress.[57]
2003-2007: U.S. subprime mortgages increased 292%, from $332 billion to $1.3 trillion, due primarily to the private sector entering the mortgage bond market, once an almost exclusive domain of government sponsored enterprises like Freddie Mac.[58][59]
<span style='font-size: 20pt'>The Federal Reserve fails to use its supervisory and regulatory authority over banks, mortgage underwriters and other lenders, who abandoned loan standards (employment history, income, down payments, credit rating, assets, property loan-to-value ratio and debt-servicing ability), emphasizing instead lender's ability to securitize and repackage subprime loans.[39][60]
2004-2007: Many financial institutions issued large amounts of debt and invested in mortgage-backed securities (MBS), believing that house prices would continue to rise and that households would keep up on mortgage payments.[61]
2004: U.S. homeownership rate peaks with an all time high of 69.2 percent.[62]
Following example of Countrywide Financial, the largest U.S. mortgage lender, many lenders adopt automated loan approvals that critics argued were not subjected to appropriate review and documentation according to good mortgage underwriting standards.[63] In 2007, 40% of all subprime loans resulted from automated underwriting.[64][65]Mortgage fraud by borrowers increases.[66]
HUD ratcheted up Fannie Mae and Freddie Mac affordable-housing goals for next four years, from 50 percent to 56 percent, stating they lagged behind the private market; they purchased $175 billion in 2004—44 percent of the market; from 2004 to 2006, they purchased $434 billion in securities backed by subprime loans[18]
October:SEC effectively suspends net capital rule for five firms—Goldman Sachs, Merrill Lynch, Lehman Brothers, Bear Stearns and Morgan Stanley. Freed from government imposed limits on the debt they can assume, they levered up 20, 30 and even 40 to 1, buying massive amounts of mortgage-backed securities and other risky investments.[67]
<span style='font-size: 20pt'>2005:
The Securities and Exchange Commission ceases an investigation of Bear Stearns "pricing, valuation, and analysis" of mortgage-backed collateralized debt obligations. No action is taken against Bear.[68] </span>Robert Shiller gives talks warning about a housing bubble to the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. He is ignored, and would later call it an incidence of Groupthink. That same year, his second edition of "Irrational Exhuberance" warns that the housing bubble might lead to a worldwide recession. [69] </span>January:
Federal Reserve Governor Edward Gramlich raises concerns over subprime lending practices, says mortgage brokers might not have incentives for careful underwriting and that that portion of the subprime industry was veering close to a breakdown, that it's possible that it is a bubble but that the housing market did not qualify for specific monetary policy treatment at this point[70].
The Bank of International Settlements warns about the problems with structured financial products, and points out the conflict of interest of credit rating agencies - that they are being payed by the same companies they are supposed to be objectively evaluating.[56]
February: The Office of Thrift Supervision implements new rules that allow savings and loans with over $1 billion in assets to meet their CRA obligations without investing in local communities, cutting availability of subprime loans.[71]
June: The International Swaps and Derivatives Association enables credit default swaps (quasi-insurance contracts) to be taken out against asset-backed-security collateralized debt obligations (including ones backed by subprime mortgages).[72]
August: Raghuram Rajan delivers his paper "Has Financial Development Made the World Riskier?", warning about credit default swaps, at the Jackson Hole Economic Symposium. His arguments are rejected by attendees, including Alan Greenspan, Donald Kohn, and Lawrence Summers.[73][74]
September: The Mortgage Insurance Companies of America send a letter to the Federal Reserve, warning about 'risky lending practices' in US real estate.[56]
Fall 2005: Booming housing market halts abruptly; from the fourth quarter of 2005 to the first quarter of 2006, median prices nationwide drop 3.3 percent.[75]
2006:
May: The subprime lender Ameriquest announces it will cut 3,800 Jobs, close its 229 retail branches and rely instead on the Web[76]
May: Merit Financial Inc, based in Kirkland, Washington, files for bankruptcy and closes its doors, firing all but 80 of its 410 employees; Merit’s marketplace decline about 40% and sales are not bringing in enough revenue to support overhead.[55]
August: U.S. Home Construction Index is down over 40% as of mid-August 2006 compared to a year earlier.[77]
September 7: Nouriel Roubini warns the International Monetary Fund about a coming US housing bust, mortgage-backed securities failures, bank failures, and a recession. His work was based partly on his study of recent economic crises in Russia (1998), Argentina (2000), Mexico (1994), and Asia (1997) [78]
Fall 2006 J.P. Morgan CEO Jamie Dimon directs the firm to reduce its exposure to subprime mortgages.[9]
December 2006 Goldman-Sachs claims after the fact that it began reducing its exposure to subprime mortgages at this point. It also begins increasing its short positions. Others claim these risk decisions were made in the spring and summer 2007.[9]

2007
See also: Financial crisis of 2007–2010, List of writedowns due to subprime crisis, and List of bankrupt or acquired banks during the subprime mortgage crisis
Home sales continue to fall. The plunge in existing-home sales is the steepest since 1989. In Q1/2007, S&P/Case-Shiller house price index records first year-over-year decline in nationwide house prices since 1991.[79] The subprime mortgage industry collapses, and a surge of foreclosure activity (twice as bad as 2006)[80] and rising interest rates threaten to depress prices further as problems in the subprime markets spread to the near-prime and prime mortgage markets.[81]


January 3: Ownit Mortgage Solutions Inc. files for Chapter 11. Records show that Ownit Mortgage Solutions owed Merrill Lynch around $93 million at the time of filing.[55]
February 5: Mortgage Lenders Network USA Inc., the country's 15th largest subprime lender with $3.3 billion in loans funded in third quarter 2006, files for Chapter 11.[55]
February–March: Subprime industry collapse; several subprime lenders declaring bankruptcy, announcing significant losses, or putting themselves up for sale.[82] These include Accredited Home Lenders Holding, New Century Financial, DR Horton and Countrywide Financial [83]
March: The value of USA subprime mortgages was estimated at $1.3 trillion as of March 2007.[84]
March 6: In a speech before the Independent Community Bankers of America's Annual Convention and Techworld, Honolulu, Hawaii, Ben Bernanke, quoting Alan Greenspan, warns that the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, were a source of "systemic risk" and suggest legislation to head off a possible crisis[85]
April 2: New Century Financial, largest U.S. subprime lender, files for chapter 11 bankruptcy.[86]
April 3: According to CNN Money, business sources report lenders made $640 billion in subprime loans in 2006, nearly twice the level 3 years earlier; subprime loans amounted to about 20 percent of the nation's mortgage lending and about 17 percent of home purchases; financial firms and hedge funds likely own more than $1 trillion in securities backed by subprime mortgage; about 13 percent of subprime loans are now delinquent, more than five times the delinquency rate for home loans to borrowers with top credit; more than 2 percent of subprime loans had foreclosure proceedings start in the fourth quarter.[86]
April 18: Freddie Mac fined $3.8 million by the Federal Election Commission as a result of illegal campaign contributions, much of it to members of the United States House Committee on Financial Services which oversees Freddie Mac.[87]
June 7: Bear Stearns & Co informs investors in two of its funds, the High-Grade Structured Credit Strategies Enhanced Leverage Fund and the High-Grade Structured Credit Fund that it was halting redemptions.[88]
June 20: Merrill Lynch seized $800 million in assets from two Bear Stearns hedge funds that were involved in securities backed by subprime loans.[89].
June 25: FDIC Chair Shelia Bair cautioned against the more flexible risk management standards of the Basel II international accord and lowering bank capital requirements generally: "There are strong reasons for believing that banks left to their own devices would maintain less capital -- not more -- than would be prudent. The fact is, banks do benefit from implicit and explicit government safety nets...In short, regulators can't leave capital decisions totally to the banks."[90]
July 19: Dow Jones Industrial Average closes above 14,000 for the first time in its history.[91]
August: worldwide "credit crunch" as subprime mortgage backed securities are discovered in portfolios of banks and hedge funds around the world, from BNP Paribas to Bank of China. Many lenders stop offering home equity loans and "stated income" loans. Federal Reserve injects about $100 billion into the money supply for banks to borrow at a low rate.[citation needed]
August 6:American Home Mortgage Investment Corporation (AHMI) files Chapter 11 bankruptcy. The company expects to see up to a $60 million loss for the first quarter 2007[92].
August 7: Numerous quantitative long/short equity hedge funds suddenly begin experiencing unprecedented losses as a result of what is believed to be liquidations by some managers eager to access cash during the liquidity crisis. It highlights one of the first examples of the contagion effect of the subprime crisis spilling over into a radically different business area.[93].
August 8: Mortgage Guaranty Insurance Corporation (MGIC, Milwaukee, Wisconsin) announces it will discontinue its purchase of Radian Group [94] after suffering a billion-dollar loss[95] of its investment in Credit-Based Asset Servicing and Securitization (C-BASS, New York]).[96]
August 9: French investment bank BNP Paribas suspends three investment funds that invested in subprime mortgage debt[97], due to a "complete evaporation of liquidity" [98] in the market. The bank's announcement is the first of many credit-loss and write-down announcements by banks, mortgage lenders and other institutional investors, as subprime assets went bad, due to defaults by subprime mortgage payers.[99] This announcement compels the intervention of the European Central Bank, pumping 95 billion euros into the European banking market.[100][101]
August 10: Central banks coordinate efforts to increase liquidity for first time since the aftermath of the September 11, 2001 terrorist attacks.[102] The United States Federal Reserve (Fed) injects a combined 43 billion USD, the European Central Bank (ECB) 156 billion euros (214.6 billion USD), and the Bank of Japan 1 trillion Yen (8.4 billion USD). Smaller amounts come from the central banks of Australia, and Canada.[102]
August 14: Sentinel Management Group suspends redemptions for investors and sells off $312 million worth of assets; three days later Sentinel files for Chapter 11 bankruptcy protection.[103] US and European stock indices continue to fall.[104]
August 15: The stock of Countrywide Financial, which is the largest mortgage lender in the United States, falls around 13% on the New York Stock Exchange after Countrywide says foreclosures and mortgage delinquencies have risen to their highest levels since early 2002.[105]
August 16: Countrywide Financial Corporation, the biggest U.S. mortgage lender, narrowly avoids bankruptcy by taking out an emergency loan of $11 billion from a group of banks.[106]
August 17: the Federal Reserve cuts the discount rate by half a percent to 5.75% from 6.25% while leaving the federal funds rate unchanged in an attempt to stabilize financial markets.[107]
August 31: President Bush announces a limited bailout of U.S. homeowners unable to pay the rising costs of their debts.[108] Ameriquest, once the largest subprime lender in the U.S., goes out of business;[109]
September 1–3: Fed Economic Symposium in Jackson Hole, WY addressed the housing recession that jeopardizes U.S. growth. Several critics argue that the Fed should use regulation and interest rates to prevent asset-price bubbles,[110] blamed former Fed-chairman Alan Greenspan's low interest rate policies for stoking the U.S. housing boom and subsequent bust [111], and Yale University economist Robert Shiller warned of possible home price declines of fifty percent.[112]
September 4: The Libor rate rises to its highest level since December 1998, at 6.7975%, above the Bank of England's 5.75% base rate.[113][114]
September 6: the Federal Reserve adds $31.25 billion in temporary reserves (loans) to the US money markets which has to be repaid in two weeks.[115]
September 7: US Labor Department announces that non-farm payrolls fell by 4,000 in August 2007, the first month of negative job growth since August 2003, due in large part to problems in the housing and credit markets.[116]
September 17: Former Fed Chairman Alan Greenspan said "we had a bubble in housing" [117] and warns of "large double digit declines" in home values "larger than most people expect."
September 18: The Fed lowers interest rates by half a point (0.5%) in an attempt to limit damage to the economy from the housing and credit crises.[118]
September 28: Television finance personality Jim Cramer warns Americans on The Today Show, "don't you dare buy a home—you'll lose money," causing a furor among Realtors.[119]
September 30: Affected by the spiraling mortgage and credit crises, Internet banking pioneer NetBank goes bankrupt [120], and the Swiss bank UBS announces that it lost US$690 million in the third quarter.[121]
October 5: Merrill Lynch announces a US$5.5 billion loss as a consequence of the subprime crisis, which is revised to $8.4 billion on October 24, a sum that credit rating firm Standard & Poor's called "startling".[122]
October 10: Hope Now Alliance is created by the US Government and private industry to help some sub-prime borrowers.[123]
October 15–17: A consortium of U.S. banks backed by the U.S. government announces a "super fund" of $100 billion to purchase mortgage-backed securities whose mark-to-market value plummeted in the subprime collapse.[124] Both Fed chairman Ben Bernanke and Treasury Secretary Hank Paulson express alarm about the dangers posed by the bursting housing bubble; Paulson says "the housing decline is still unfolding and I view it as the most significant risk to our economy. … The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."[125]
October 31: Federal Reserve lowers the federal funds rate by 25 basis points to 4.5%.
November 1: Federal Reserve injects $41B into the money supply for banks to borrow at a low rate. The largest single expansion by the Fed since $50.35B on September 19, 2001.
November 15: Financial Accounting Standards Board "Fair Value Measurements" standards upgrade the quality of financial reporting through greater transparency.[126][127] However, this "mark-to-market" accounting may exaggerate the loss in value of an asset, as shown on balance sheets, and trigger a cascade of unnecessary financial losses.[128]
December 6: President Bush announces a plan to voluntarily and temporarily freeze the mortgages of a limited number of mortgage debtors holding adjustable rate mortgages (ARM). He also asked Members Of Congress to: 1. pass legislation to modernize the FHA. 2. temporarily reform the tax code to help homeowners refinance during this time of housing market stress. 3. pass funding to support mortgage counseling. 4. pass legislation to reform Government Sponsored Enterprises (GSEs) like Freddie Mac and Fannie Mae.[129].
December 24: A consortium of banks officially abandons the U.S. government-supported "super-SIV" mortgage crisis bail-out plan announced in mid-October,[130] citing a lack of demand for the risky mortgage products on which the plan was based, and widespread criticism that the fund was a flawed idea that would have been difficult to execute.[130]

2008

2008 in general
Starting in late 2007, and throughout 2008, the 'monoline' municipal bond insurance companies, such as AMBAC, MBIA, and ACA, have their credit ratings downgraded by the credit rating agencies because they had also gotten 'insurance' policies (via credit default swaps) on mortgage-based CDOs. Since the entire 'municipal bond insurance' business model depends on the insurer having a very high credit rating, these companies begin to collapse, and the value of many of the bonds they insured also falls.[131][132][133][134][135]


January 2008 to August 2008

The New York City headquarters of Lehman Brothers.See also: Financial crisis of 2007–2010, List of writedowns due to subprime crisis, and List of bankrupt or acquired banks during the subprime mortgage crisis
Financial crisis escalates with collapse of major lenders and investors.


January 2–21: January 2008 stock market downturn.
January 24: The National Association of Realtors (NAR) announces that 2007 had the largest drop in existing home sales in 25 years,[136] and "the first price decline in many, many years and possibly going back to the Great Depression."[137]
March 1–June 18: 406 people are arrested for mortgage fraud in an FBI sting across the U.S., including buyers, sellers and others across the wide-ranging mortgage industry.[138]
March 10: Dow Jones Industrial Average at the lowest level since October 2006, falling more than 20% from its peak just five months prior.
March 14: Bear Stearns gets Fed funding as shares plummet.[139]
March 16: Bear Stearns is acquired for $2 a share by JPMorgan Chase in a fire sale avoiding bankruptcy. The deal is backed by the Federal Reserve, providing up to $30B to cover possible Bear Stearn losses.[140]
May 6: UBS AG Swiss bank announces plans to cut 5500 jobs by the middle of 2009.[141]
June 18: As the chairman of the Senate Banking Committee Connecticut's Christopher Dodd proposes a housing bailout to the Senate floor that would assist troubled subprime mortgage lenders such as Countrywide Bank, Dodd admitted that he received special treatment, perks, and campaign donations from Countrywide, who regarded Dodd as a "special" customer and a "Friend of Angelo." Dodd received a $75,000 reduction in mortgage payments from Countrywide.[142][143] The Chairman of the Senate Finance Committee Kent Conrad and the head of head of Fannie Mae Jim Johnson also received mortgages on favorable terms due to their association with Countrywide CEO Angelo R. Mozilo.[142][144]
June 19: Ex-Bear Stearns fund managers arrested by the FBI for their allegedly fraudulent role in the subprime mortgage collapse. The managers purportedly misrepresented the fiscal health of their funds to investors publicly while privately withdrawing their own money.[145]
July 11 Indymac Bank, a subsidiary of Independent National Mortgage Corporation (Indymac), is placed into the receivership of the FDIC by the Office of Thrift Supervision. It was the fourth-largest bank failure in United States history,[146] and the second-largest failure of a regulated thrift.[147][148]. Before its failure, IndyMac Bank was the largest savings and loan association in the Los Angeles area and the seventh-largest mortgage originator in the United States.[149]
July 17: Major banks and financial institutions had borrowed and invested heavily in mortgage backed securities and reported losses of approximately $435 billion as of 17 July 2008.[150]
July 30: President Bush signs into law the Housing and Economic Recovery Act of 2008, which authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value.

September 2008
Main article: Global financial crisis in September 2008

September 7: Federal takeover of Fannie Mae and Freddie Mac, which at that point owned or guaranteed about half of the U.S.'s $12 trillion mortgage market, effectively nationalizing them. This causes panic because almost every home mortgage lender and Wall Street bank relied on them to facilitate the mortgage market and investors worldwide owned $5.2 trillion of debt securities backed by them.[151][152]
September 14: Merrill Lynch is sold to Bank of America amidst fears of a liquidity crisis and Lehman Brothers collapse[153]
September 15: Lehman Brothers files for bankruptcy protection[154]
September 16: Moody's and Standard and Poor's downgrade ratings on AIG's credit on concerns over continuing losses to mortgage-backed securities, sending the company into fears of insolvency.[155][156] In addition, the Reserve Primary Fund "breaks the buck" leading to a run on the money market funds. Over $140 billion is withdrawn vs. $7 billion the week prior. This leads to problems for the commercial paper market, a key source of funding for corporations, which suddenly could not get funds or had to pay much higher interest rates.[157]
September 17: The US Federal Reserve lends $85 billion to American International Group (AIG) to avoid bankruptcy.
September 18: Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke meet with key legislators to propose a $700 billion emergency bailout through the purchase of toxic assets. Bernanke tells them: "If we don't do this, we may not have an economy on Monday."[158]
September 19: Paulson financial rescue plan is unveiled after a volatile week in stock and debt markets.
September 23: The FBI discloses that it had been investigating the possibility of fraud by mortgage financing companies Fannie Mae and Freddie Mac, Lehman Brothers, and insurer American International Group, bringing to 26 the number of corporate lenders under investigation.[159]
September 25: Washington Mutual is seized by the Federal Deposit Insurance Corporation, and its banking assets are sold to JP MorganChase for $1.9 billion.
September 29: Emergency Economic Stabilization Act is defeated 228-205 in the United States House of Representatives; Federal Deposit Insurance Corporation announces that Citigroup Inc. would acquire banking operations of Wachovia.[160]
September 30: US Treasury changes tax law to allow a bank acquiring another to write off all of the acquired bank's losses for tax purposes [161]

October 2008
Main article: Global financial crisis in October 2008

October 1: The U.S. Senate passes HR1424, their version of the $700 billion bailout bill.[162].
October 1: The financial crisis spreads to Europe.[163][164]
October 3: President George W. Bush signs the Emergency Economic Stabilization Act, creating a $700 billion Troubled Assets Relief Program to purchase failing bank assets.[165] It contains also easing of the accounting rules that forced companies to collapse because of the existence of toxic mortgage-related investments.[166] Also key to winning GOP support was a decision by the Securities and Exchange Commission to ease mark-to-market accounting rules that require financial institutions to show the deflated value of assets on their balance sheets."[127][167]
October 3: Using tax law change made September 30, Wells makes a higher offer for Wachovia, scooping it from Citigroup [168]
October 6–10: Worst week for the stock market in 75 years. The Dow Jones loses 22.1 percent, its worst week on record, down 40.3 percent since reaching a record high of 14,164.53 October 9, 2007. The Standard & Poor's 500 index loses 18.2 percent, its worst week since 1933, down 42.5 percent in since its own high October 9, 2007.[169]
October 6: Fed announces that it will provide $900 billion in short-term cash loans to banks.[170]
October 7: Fed makes emergency move to lend around $1.3 trillion directly to companies outside the financial sector.[171]
October 7: The Internal Revenue Service (IRS) relaxes rules on US corporations repatriating money held oversees in an attempt to inject liquidity into the US financial market. The new ruling allows the companies to receive loans from their foreign subsidiaries for longer periods and more times a year without triggering the 35% corporate income tax.[55]
October 8: Central banks in USA (Fed), England, China, Canada, Sweden, Switzerland and the European Central Bank cut rates in a coordinated effort to aid world economy.[172]
October 8: Fed also reduces its emergency lending rate to banks by half a percentage point, to 1.75 percent.[173]
October 8: White House considers taking ownership stakes in private banks as a part of the bailout bill.[174] Warren Buffett and George Soros criticized the original approach of the bailout bill.[175][176]
October 11: The Dow Jones Industrial Average caps its worst week ever with its highest volatility day ever recorded in its 112 year history. Over the last eight trading days, the DJIA has dropped 22% amid worries of worsening credit crisis and global recession. Paper losses now on US stocks now total $8.4 trillion from the market highs last year.[55]
October 11: The G7, a group of central bankers and finance ministers from the Group of Seven leading economies, meet in Washington and agree to urgent and exceptional coordinated action to prevent the credit crisis from throwing the world into depression. The G7 did not agree on the concrete plan that was hoped for.[55]
October 14: The US taps into the $700 billion available from the Emergency Economic Stabilization Act and announces the injection of $250 billion of public money into the US banking system. The form of the rescue will include the US government taking an equity position in banks that choose to participate in the program in exchange for certain restrictions such as executive compensation. Nine banks agreed to participate in the program and will receive half of the total funds: 1) Bank of America, 2) JPMorgan Chase, 3) Wells Fargo, 4) Citigroup, 5) Merrill Lynch, 6) Goldman Sachs, 7) Morgan Stanley, 8) Bank of New York Mellon and 9) State Street. Other US financial institutions eligible for the plan have until November 14 to agree to the terms.[55]
October 21: The US Federal Reserve announces that it will spend $540 billion to purchase short-term debt from money market mutual funds. The large amount of redemption requests during the credit crisis have caused the money market funds to scale back lending to banks contributing to the credit freeze on interbank lending markets. This government is hoping the injection will help unfreeze the credit markets making it easier for businesses and banks to obtain loans. The structure of the plan involves the Fed setting up four special purpose vehicles that will purchase the assets.[55]

November 2008
Main article: Global financial crisis in November 2008

November 12: Treasury Secretary Paulson abandons plan to buy toxic assets under the $700 billion Troubled Asset Relief Program (TARP). Mr. Paulson said the remaining $410 billion in the fund would be better spent on recapitalizing financial companies.[55]
November 15: The group of 20 of the world’s largest economies meets in Washington DC and releases a statement of the meeting. Although no detailed plans were agreed upon, the meeting focused on implementing policies consistent with five principles: strengthening transparency and accountability, improving regulation, promoting market integrity, reinforcing cooperation and reforming international institutions.[55]
November 17: The Treasury gives out $33.6 billion to 21 banks in the second round of disbursements from the $700 billion bailout fund. This payout brings the total to $158.56 billion so far.[177]
November 24: The US government agrees to rescue Citigroup after an attack by investors causes the stock price to plummet 60% over the last week under a detailed plan that including injecting another $20 billion of capital into Citigroup bringing the total infusion to $45 billion.[177]
November 25: The US Federal Reserve pledges $800 billion more to help revive the financial system. $600 billion will be used to buy mortgage bonds issued or guaranteed by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.[177]
November 28: The Bank for International Settlements (BIS), the global organization behind the Basel Accord, issues a consultative paper providing supervisory guidance on the valuation of assets. The paper provides ten principles that should be used by banks to value assets at fair market value.[177]

December 2008
Main article: Global financial crisis in December 2008

2009
Main article: Global financial crisis in 2009

<span style='font-size: 20pt'>2010
April 16: The Securities and Exchange Commission sues Goldman Sachs for fraud, for allegedly having failed to disclose vital information to investors in one of its "Abacus" mortgage-backed CDOs in 2007. The CDO was allegedly 'designed to fail' by the hedge fund of John Paulson, so that Paulson could make large profits by betting against it. Allegedly this was not disclosed to investors by Goldman, and they lost roughly a billion dollars, while Paulson & Co profited.[178][179] </span>


<span style="color: #FF0000"> As I have been saying, all along, it was a done deal before the Democratics ever gained the majority, and NO, it was not Fannie and Freddie, it was the huge numbers by predatory lenders, and the fraud and greed of Wall Street. </span>

LWW
06-26-2011, 06:32 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body">The NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion.</div></div>

I wanted to return to this golden oldie.

Since we all know that Obama can't be held ... according to the O-cult ... responsible for any policy before he had been in office for 1 full year then we have to acknowledge that Obama's policy had nothing to do with the recession ending and everything to do with the mess that is 20010/11/12.

LWW
06-15-2012, 01:07 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body">

<span style="color: #FF6666"> Well, I guess Obama was right! All you nasayers who did not participate in the Summer of Recovery should be ashamed.

Health care ahs reduced costs and ensured million of new Mexicans and unemployment is now under control. I do appoligize for my former pessimissim in the situation.

Now we can really spend the money! /forums/images/%%GRAEMLIN_URL%%/smile.gif</span>


The “Great Recession” has ended, officially.

At least, that's the word from the private research organization that calls the beginnings and endings of recessions, the National Bureau of Economic Research.

The NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion. The announcement rules out the possibility of a so-called “double-dip” recession, because any new downturn would be seen as a brand new recession.

President Barack Obama said that even though the NBER officially named an end to the recession, the economy has a long way to go and much work to be done to become healthy again. "Something that took ten years to create is going to take a little more time to solve," Obama said at a town-hall-style meeting shown live on CNBC.

The NBER said it chose the June 2009 date based on examination of data including gross domestic product, employment and personal income.

"The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months," the NBER added in a press release on its website.

Just because the recession ended 15 months ago, it doesn't mean that the economy is healthy, the NBER asserted. "Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion," the NBER said.
</div></div>

How'd that all work out?

Sev
06-15-2012, 03:53 PM
HEh heh heh!!!

Soflasnapper
06-15-2012, 06:56 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: LWW</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Deeman3</div><div class="ubbcode-body">The NBER said Monday that the recession which began in December 2007 ended in June 2009, which marked the beginning of an expansion.</div></div>

I wanted to return to this golden oldie.

Since we all know that Obama can't be held ... according to the O-cult ... responsible for any policy before he had been in office for 1 full year then we have to acknowledge that Obama's policy had nothing to do with the recession ending and everything to do with the mess that is 20010/11/12. </div></div>

Moronic much?

He is responsible for anything he changed.

The point about the year after (really it should be 9 months into the term, not a full year) is that the fiscal year budget of the calendar year in which he took office started, and was in place, from the prior Oct 1 before he took office, and then through Sept 30.

Anything he CHANGED in the first 9 months is of course attributable to him (with most of the fiscal policy not subject to his change or control).

So what DID he change? He started the stimulus spending after he got it passed through Congress, in those first 9 months. Actually, within about the first 6 months.

Your ridiculous word game playing is perhaps amusing to yourself and some others not interested in facts, so knock yourself out (literally, if possible, as it might improve your thinking with a reboot). But as these facts are fairly well known, you have not made a sound argument that can persuade anyone who knows the score of how these things work.

Which you know, so why do you play around this way?

LWW
06-16-2012, 03:18 AM
My word game?

That's precious coming from folks who believe we are in both a boom and a depression at the same time.

Soflasnapper
06-16-2012, 09:58 AM
Shu, right!

NOBODY says we are in a boom and a depression right now.

You and others would misuse the word 'recession,' and say we're in one now, and that is not true.

Not being in a recession means we are in a recovery, but that does not mean we are in any sense booming. 'Recovery' simply means positive gdp growth, which we have now and have had since June 2009 or a bit sooner.

If you want to say claims of recovery are claims of a booming economy, and then use that false claim of your own to misrepresent what others are saying, it is a false and dishonest tactic.

Soflasnapper
06-16-2012, 11:32 AM
He probably has the franchise, here and perhaps somewhere else, but he didn't invent or head up this enterprise.

Whether he knows it or not, he's being used by those who know these tactics spread lies, which is their aim. He may or may not be in on that part of this scam.

It's possible, with impaired reasoning ability, to fail to see how lame their schtick really is. Particularly if one is a seething mass of resentment just itching to strike back. Anything handy with which to hit one's tormentors about the head and shoulders seems a worthy implement.

Gayle in MD
06-17-2012, 07:44 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Soflasnapper</div><div class="ubbcode-body">He probably has the franchise, here and perhaps somewhere else, but he didn't invent or head up this enterprise.

Whether he knows it or not, he's being used by those who know these tactics spread lies, which is their aim. He may or may not be in on that part of this scam.

It's possible, with impaired reasoning ability, to fail to see how lame their schtick really is. Particularly if one is a seething mass of resentment just itching to strike back. Anything handy with which to hit one's tormentors about the head and shoulders seems a worthy implement. </div></div>


<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body"> <span style='font-size: 11pt'>Particularly if one is a seething mass of resentment just itching to strike back. </span>
</div></div>


Excellent description of rightwingers!

They have been in a state of resentment, ever since they couldn't pull off pointless impeachment p0receedings, for politicalo purposes, that cost the country millions of dollars, and like the Bush Illegal, Immoral Iraq War, was proven later to have been completely un-necessary from the start!

Let's see now, Repiglicans have disenfranchised voters who vote Demo9cratically all over the country, demonized Hispanic and Latino students, screwed over all college students, in general, attacked single mothers, tried to deny women their Constitutional RIGHTS, attacked Gays, Lesbians, Transgenders, and demonized Liberals. Tried to remove all pollution and Wall st. Regulations, block Oversight of our markets, and ignored our rule of law in this country, with their War On Women.

They have blocked any efforts for campaign finance disclosure, blocked stronger regulation for Wall St. crooks, blocked protection of our environment, blocked money to educate our kids, put out fires, police our streets, and removed our rights to organize UNIONS!


Who the hell would vote for these pigs, but a stupid person who has been throughly propagandized....lied into believe Roveriasn styled myths and slander!!!????

karl Rove should be in jail right now, not collecting foreign money from Casino mafia to throw the next election!

Democracy is dead. The Repiglican Party killed it dead. Tax payers are footing the bill for crooks who stole America's wealth, and BUSH AND GREENSPAN, LED THE WAY!

G.

LWW
06-17-2012, 07:44 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Soflasnapper</div><div class="ubbcode-body">NOBODY says we are in a boom and a depression right now.
</div></div>

Obama does ... and you slavishly believe both stories.

Soflasnapper
06-17-2012, 08:33 AM
I know it's not true, and in all ways.

It isn't true that he says that, and it isn't true that I believe it.

What you mean is your equivocation of recovery and boom, and your equivocation of a slow recovery with a depression.

Interesting abuse of language, but still an abuse and wrong, accounting for why you are stating a falsehood every time you mention this topic.