Main article: Crisis of stock in January 2008
Main article: Financial Rescue Plan United States, 2008
Far from abating, the effects of the financial crisis spread to the real economy, entering United States on a possible economic recession, which requires measures that fail to prevent the falling of the bag. that binds to loss of profits of major banks in the world. On Monday January 21 was a historic stock drop, dragging all the bags of the world except the U.S., which is being closed for a holiday. The The same is true March 17, the day that the purchase of the fifth U.S. financial bank (Bear Stearns) by the JP Morgan financial results in a 90 drop in the shares of that entity.
In April, the IMF estimated at 945,000 million dollars of losses accumulated by the crisis. In 2008 already assumes that the crisis will be global, extending to Asia and Latin America, and involves, in combination with high Initial inflation at the international level (especially at the price of food and energy) an international economic slowdown during a relatively long period Not surprisingly, the first half shows a drop of half the world’s major stock exchanges: In particular, the Spanish recorded the worst half of its 135 year history of its recent record.
In July 2008, the FED is forced to rescue the two largest U.S. mortgage: Fannie Mae (Federal Mortgage National Association) and Freddie Mac (Federal Loan Mortgage Corporation for Housing) which has been considered the largest nationalization in history, costing the public purse of around 200,000 million dollars. It also nationalized the bank IndyMac and Bear Stearns rescue entity. In the same line , the House of Representatives also decided to spend 3900 million dollars to help mortgages that can not pay their debts
On September 15 Lehman Brothers, the fourth U.S. investment bank, which manages 46,000 million dollars in mortgages, declares bankruptcy, and Bank of America is forced to buy Merrill Lynch for the institution of 31,000 million dollars . More than a year after the start of the crisis devastating effects on the financial economy is worse, pushing the bags to the bottom.
On September 18 the U.S. government announced a multimillion-dollar rescue plan, the largest in history, causing pockets of fire around the world are getting record increases.
On September 22 the U.S. Federal Reserve approved the conversion of the last two independent investment banks remaining, Goldman Sachs and Morgan Stanley, in commercial banks, which allows greater control and regulation by the authorities. NAtional Magazine Exchange This will end up with a model with 80 years of banking history. Even the EDF, with JP Morgan, has had to rescue the largest savings bank in the country, Washington Mutual. It is the largest bankruptcy bank in the history of the United States
In the fourth week of September, President George W. Bush warned that United States was on the brink of financial panic and a long and painful recession. In order to convince Congress to make a plan to rescue the crisis, negotiated for an entire week with senior representatives of the opposition, is urgently submitted to the U.S. Senate September 29, 2008 and that same day ballot is rejected as’ unacceptable ‘, dropping the bags as a result of Wall Street, where the Dow Jones lost 6.98 , the SandP500 fell 8.37 and the Nasdaq sank a 9.14 fall into the highest since 20 years. The emergency plan designed by Treasury Secretary Henry Paulson, was that the U.S. Treasury, in collaboration with the Federal Reserve sought to inject up to 700,000 million dollars by the taxpayers to buy assets from banks to property mortgages contaminated trash, and to keep them out of their accounts until the economy recovers, the largest intervention of the country’s economic history.
In a second vote is passed in the Senate with respect to the novelty rejected the first proposal to increase the limits on bank deposits guaranteed by the Federal Deposit Insurance (FDIC), which went from 100,000 to 250,000 dollars to policyholders depositors if a bank failure. The day October 3, 2008 is approved in the Congress to consider aid plan into law.
On the other hand has argued against this interventionist and dangerous consequences for its political and economic, that there are other mechanism other than the rescue, which in a heavy burden for taxpayers socializing the losses of private actors, and in many cases it is preferable to bankruptcy because sanearia of useless assets. These voices contend that the problem is not lack regulations, but too bad regulations.
Main article: Crisis of stock in January 2008