View stunning SlideShares in full-screen with the new iOS app!Introducing SlideShare for AndroidExplore all your favorite topics in the SlideShare appGet the SlideShare app to Save for Later — even offline
View stunning SlideShares in full-screen with the new Android app!View stunning SlideShares in full-screen with the new iOS app!
2000-2003 Recession period varying depending on country – Fed lowers rates 11 times to 1.75%
2002 Home prices appreciating 10% or more particularly in California, Florida and Northeast States
2004 Home prices appreciating by over 25% in California, Florida, Arizona, Hawaii and Nevada
2000-2007 Mortgage market more than doubles in size – Share of sub-prime lending goes from virtually nothing in 1996 to almost 25% of market by 2006 – Sub-prime lending hits $1.3 trillion and along with Alt-A mortgages and Jumbo mortgages the market is $2.8 trillion in a $10.4 trillion market.
2007 February –March Sub-prime market collapses more than 25 sub-prime lenders go bankrupt
2007 April – New Century Financial collapses
2007 August – sub-prime loans discovered in portfolios of banks, hedge funds – stock market panic, huge injections of liquidity
2007 September The crisis goes global with collapse of Britain’s Northern Rock and a run on the bank
2007 Billions of dollars in losses announced by financial institutions including Citibank, Merrill Lynch precipitating a further market panic in December and January 2008 – Fed slashes funds rate from 5.25% to 3% - A credit crunch ensues