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New Century Financial Corp., a major subprime lender, files for bankruptcy.
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The stock market hits an all-time high, with the Dow at 14,164.
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The recession officially begins. The unemployment rate stands at 5 percent.
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The Fed creates a Term Auction Facility to lend to ailing financial institutions.
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The Fed reduces short-term interest rates for the fifth time in four months, to 3 percent. (The rate was 5.25 in September 2007.)
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President George W. Bush signs the Economic Stimulus Act of 2008, which gives individuals a tax rebate and encourages business investment.
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Brokerage firm Bear Stearns collapses and is bought out by JPMorgan Chase.
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The Fed reduces short-term interest rates to 2 percent.
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General Motors files for bankruptcy and says it will close 14 US plants.
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For the first time in history, the Fed lowered its benchmark interest rate to zero.
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The federal government takes over mortgage giants Fannie Mae and Freddie Mac.
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Lehman Brothers files the largest bankruptcy case in US history.
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The Fed bails out insurance giant AIG.
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The unemployment rate peaks at 10 percent, hitting double digits for the first time in 26 years.
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Bush signs into law an emergency bailout package that establishes the $700 billion Troubled Asset Relief Program (TARP).
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Period: to
The Dow suffers its worst weekly loss in history, falling 1,874 points, or 18 percent.
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The Fed's short-term interest rate, after several more drops, hits 1 percent.
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The US government unveils a massive rescue package for Citigroup.
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The Fed creates a program (Term Asset-Backed Securities Lending Facility, or TALF) to support owners of securities backed by credit-card debt, student loans, auto loans, and small-business loans.
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The US Treasury gives out the first TARP money, totaling $125 billion, to nine banks.
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The government bails out General Motors and Chrysler, offering an initial $13.4 billion from the TARP fund.
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US home prices peak after decades of financial deregulation and government promotion of home ownership.