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market is in trouble
by summer of 2007 the housing market isin trouble. Prices are falling and inventories and forclosures are rising -
trouble starts
Rumors that Bear Stearns is in trouble starts circulating -
confronted with questions
Bear's CEO, Alan Schwartz, goes on CNBC and is confronted with the question on whether or not Bear's most important client Goldman Sachs is beginning to desert the firm -
the race to find a buyer
The Race to find a buyer. Prohibited from directly lending to Bear, The Fed works out a plan to loan money to JP Morgan who in turn will loan the money to Bear -
financial institutions must be allowed to fail
Treasury Secretary Henry Paulson sends a message that "Financial Institutions Must Be Allowed to Fail" Bear Stocks sell for $2 a share -
stocks fall
Fannie and Freddie the worldest largest mortgage lenders are hammered by losses related to the housing crisis. In mid-July their stocks fall more than 60% -
fed takes control
Fed takes control of Fannie and Freddie -
stock pludges
Lehman;s stck plunges 45% . They had made billions in the now-toxic, high-risk real estate market and couldn't secure extra financing from other banks. they had no success -
moral hazard Sep 12-14, 2008
Concerned about moral hazard, Paulson makes clear that there will be no bailout for Lehman -
Period: to
moral hazard
Concerned about moral hazard, Paulson makes clear that there will be no bailout for Lehman -
moral hazard sep. 12-14, 2008
Concerned about moral hazard, Paulson makes clear that there will be no bailout for Lehman -
moral hazrad sep. 12-14, 2008
Concerned about moral hazard, Paulson makes clear that there will be no bailout for Lehman -
market freezes
After Lehman goes under, the stock market nosedives and globle credit market freezes -
congressional leadership
Paulson and Bernanke go to Congress to present to rescue planto congressional leadership. 'Ifwe don't do this,we may not have an economy on Monday," warns Bernanke
