Crash of 2008: Ben Bagnoli, Dylan Reynolds, Marco Rumbin, Nick Datre

Before Crash

U.S DJIA

January 3rd, 2006

The US DJIA rose 129.91 to 10847.41 on expectations for an end to interest rate increases based the release of minutes from the Federal Reserve meeting in December.

U.S DJIA 2

May 5, 2006

The DJIA rose 138 points to a 6-year high. A report of modest job growth triggered hopes that the Federal Reserve will soon end interest rate hikes.

U.S DJIA 3

June 5, 2006

Federal Reserve Chairman Ben Bernanke warned of concern on core inflation. His remarks knocked the DJIA down 199 points to 11,048.72.

Feddie Mac

February 2007

Freddie Mac announced that they were no longer buying the most risky subprime

New Century Fincanial Coprostion

April 2007

New Century Financial Corporation files for bankruptcy

New High-Stock Market

June 2007

Stock Market reaches a new all-high over 1400 points

Bear Stearns

July 31st, 2007

Bear Stearns liquidates two of its mortgage security hedge funds

World Wide Credit Crunch

August 2007

A World Wide Credit Crunch had begun and there were no subprime loans available. Subprime leader American Home Mortgages files for bankruptcy. This marked the start of the house market crash.

The Libor Rate

September 2007

The Libor rate raises to its highest level since December of 1998 at 6.8%

Stock Market Finishes

December 2007

The Stock Market finishes the year at 13,264 points.

The Crash

B of A

January 11, 2008

Bank of America acquired Countywide financial for $4.1 billion, Countrywide had a total of $1.5 trillion worth of loans

Bear Stearns

March 16th, 2008

Bear Stearns the verge of bankruptcy signs a merger agreement with J.P Morgan to sell itself for $2 a share which she was a fraction of the current trading price

Treasury Takeover

September 6th, 2008

The Treasury announced a takeover of both Frannie Mae and Freddie Mac that had over
$5 trillion in mortgages

B of A 2

September 14th, 2008

Bank of America sends a deal to acquire Merrill Lynch

Lehman Bros

September 15th, 2008

Lehman Brothers files for bankruptcy. The Dow drops 400 points closing at 10,917.

Federal Reserve

September 17th, 2008

Federal Reserve lends $85 billion to American International Group
(AIG)

Goldman Sachs & Morgan Stanley

September 21, 2008

Goldman Sachs & Morgan Stanley will become bank holding companies subject to greater regulation by the federal reserve.

Congress Rejection

September 29th, 2008

Congress rejects $700 billion Wall Street Finical rescue package. Sending the DOW Jones Industrial average down 778 points.

Senate Bailout

October 1st, 2008

Senate passes the $700 billion bailout bill

House Bailout

October 3rd, 2008

The House passes the $700 billion bailout plan and president signs it into a law

Aftermath

Federal Loans

October 6th, 2008

The FED announces that it will provide $900 billion in short term loans to banks. Dow closes below 10,000

Worst Losing Percentage

October 10th, 2008

The Dow closes at 8,451, stock market has had its worst leak ever losing 22% over the past 8 trading days or $8.4 trillion from the markets high in 2007

Treasury Bailout

October 14th, 2008

The Treasury taps $250 billion of bailout funds and uses the money to shore up the nations top banks

President Bush

October 22nd, 2008

President Bush announces that he will stay international conference of financial leaders on November 15th 2008

Forclosers

December 31st, 2008

There were over 3 million foreclosures by this year. Florida, Arizona, California had rates of 4% with Nevada at 7.3%

Obama Signs

February 17th, 2009

Obama signs American Recovery and Reinvestment act

DJIA Faling

February 23rd, 2009

The DJIA fell 250.89 (3.4%) to 7114.78, nearly half the peak it hit 16 months ago, and its lowest close in over 11 years.

Frannie Mae Loses

February 26th, 2009

Frannie Mae reports a loss of $25.2 billion in the fourth quarter of 2008.

U.S Government

March 2nd, 2009

The US government unveiled a revamped rescue package to insurance giant American International Group (AIG) and will provide the troubled company with another $30 billion in taxpayer money on an "as needed" basis. The DJIA fell 299.64 to close at 6763.29, falling below 7,000 for the first time in 12 years.

The Dow Rises

July 24th, 2009

The Dow beat its January high, rising to 9,093.24 by close of the day.