The Anatomy of a Credit Crisis
(2000-2008 and Beyond)
A brief outline of the major events which led to the current state of affairs:
- It started with a software coding glitch, which led to a Y2K hardware replacement cycle.
- The proliferation of the internet which creating the Dotcom/Tech Bubble.
- The millennium stock hangover leading to the Nasdaq Market Crash, spreading into the overall market.
- A telecom crash leading to a general economic slowdown.
- 911-Terrorist Attack.
- The US had what turned out to be a shallow recession.
- Causing the Fed to drop interest rates more than any time in modern history.
- Which created a liquidity glut.
- Inflating a housing/real estate bubble.
- Allowing for the creative Financial Engineering.
- To deflate the housing bubble, the Fed had to raises interest rates aggressively (13-times).
- Which Led to a housing recession.
- Which created a credit crisis.
- Leading to subprime defaults.
The next group of defaults will be: Credit Card Debt, Student Loans, Automobile Loans etc.
Unless extreme steps are taking NOW, this may go down in history as a one of the largest financial crisis!
Major Financial Crisis
- Mortgage-Credit Crunch (2007 - 2008)
- Russian Financial Crisis – Ruble Crisis (1998)
- LTCM – Long-Term Capital Management (1997)
- Asian Financial Crisis (1997)- NIKKEI Crash, Real Estate Crash
- Black Monday (1987)
- Wall Street Crash (1929)
- Gouda Tulip Bulbs (1634 – 1637)
Reference:
List of Recessions
List of Stock Market Crashes
Lists of Economic Bubbles