Credit Crisis Time Line

 
2007 
AugustSub-prime crisis hits: Banks begin to refuse business with each other as 'bad debt' of sub-prime loans start defaulting
In New Zealand its finance companies, Bridgecorp, Capital & Merchant
  
September-OctoberBanks announce huge losses and bad debts: UBS, Citigroup, Merrill Lynch.  Run on English bank Northern Rock, one billion pounds withdrawn.
  
2008 
JanuaryGlobal share markets, biggest drop since September 11, 2001
US Federal reserve reacts swiftly dropping interest rates 1.5%
March-AprilUS investment bank Bearn Stearns collapses, taken over by JP Morgan
May-JuneMortgage Market Implodes: Freddie Mae and Fannie Mac with 80% of mortgage market bailed out by US government.
Further finance company failures in New Zealand, St Laurence, Strategic Finance
AugustNew Zealand  enters recession (defined as 2 quarter negative GDP growth)
SeptemberUS Government reacts:  Lehman Brothers files for bankruptcy protection under Chapter 11.  AIG, largest US insurance company is bailed out by US government, $85 billion USD.
October$800 billion US bank rescue package finally approved. Large interest rate cuts in the US and UK.
In New Zealand Labour Government announces Retail Deposit Guarantee scheme.
NovemberRecession announced: Japan and Europe.  IMF approves loans for the Ukraine and Iceland as their economies implode.  China announces $586 billion USD stimulus package.
DecemberUS enters recession: Major US corporations announce job losses. General Motors and Chrysler plead for $18 billion USD bailout package. International stocks markets down for the year by 40%.
  
2009 
JanuaryBritain enters recession. Jobless figures soar, estimated 51 million jobs world wide to be lost in 2009.
President Barrack Obama announces new stimulus package.
New Zealand Reserve Bank slashes OCR rate from 5.0% to 3.5%.
Recovery in world share markets by 8%
FebruaryNew Zealand Government announces $480MM NZD stimulus package over next 4 years, $500MM infrastructure spend to be fast tracked.