Return Styles: Pseud0ch, Terminal, Valhalla, NES, Geocities, Blue Moon. Entire thread

Fasten your seatbelts.

Name: Anonymous 2008-10-04 1:49

Panic of 1797
Panic of 1819
Panic of 1825
Panic of 1837
Panic of 1847
Panic of 1857
Panic of 1866
Panic of 1873
Panic of 1884
Panic of 1890
Panic of 1893
Panic of 1896
Panic of 1901
Panic of 1907
Panic of 1910–1911
Wall Street Crash of 1929
Recession of 1937
Recession of 1958
Stock market downturn of 2002

Coming up next, the Economic crisis of 2008

Name: Anonymous 2008-10-09 0:42

The damage to S&L operations led Congress to act, passing a bill in September 1981 allowing S&Ls to sell their mortgage loans and use the cash generated to seek better returns. This all made S&Ls eager to sell their loans. The buyers – major Wall Street firms – were quick to take advantage of the S&Ls' lack of expertise, buying at 60%-90% of value and then transforming the loans by bundling them as, effectively, government-backed bonds (by virtue of Ginnie Mae, Freddie Mac, or Fannie Mae guarantees). S&Ls were one group buying these bonds, holding $150 billion by 1986, and being charged substantial fees for the transactions. 

A large number of S&L customers' defaults and bankruptcies ensued, and the S&Ls that had overextended themselves were forced into insolvency proceedings themselves.  A Federal Reserve Bank panel stated the resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse selection incentives that compounded the system’s losses.

Newer Posts
Don't change these.
Name: Email:
Entire Thread Thread List