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

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