One was the failure of thousands of Savings & Loan institutions in the late 1980s which hit the mortgage lending market particularly hard.

But in that month alone, Lehman Brothers Holdings Inc. filed for bankruptcy protection, the government took over Fannie Mae and Freddie Mac, and the Federal Reserve injected the American International Group with a major cash infusion to keep it from failing.Still, the Great Recession of 2008 didn’t just happen in one month. As would happen in many future recessions, the Fed raised interest rates to combat high inflation caused by an influx of dollars into the wartime economy. When the economy needs a boost, the Federal Reserve can use open market operations to increase the money supply. You have money questions. Intro to Economics The CFPB says its role is to educate people about financial markets, take consumer complaints, and enforce laws against discriminatory or fraudulent financial practices.The Fed votes to spend $45 billion per month buying mortgage-backed securities and $40 billion per month on longer-term Treasury bonds.

confidence. 6:38 Our editorial team does not

At the same time, the Fed’s timid interest rates hikes in 1980 weren’t enough to slow inflation, so Fed chief Paul Volcker pushed interest rates to new heights—21.5 percent in 1982. A recession is when a country experiences two or more quarters of contraction in their economy.

on certain links posted on our site. A timeline created with Timetoast's interactive timeline maker. personal finance decisions. When the consumer spending boom began to level off in 1948, it triggered a “mild” 11-month recession in which GDP shrunk by only 2 percent. credit-by-exam regardless of age or education level.Not sure what college you want to attend yet?

The Treasury announces it will buy a 60 percent stake in GM for $30 billion.Obama signs into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, a sweeping reform of U.S. financial regulation.The Fed says it will buy $600 billion in long-term Treasury bonds over the next eight months.The Consumer Financial Protection Bureau is launched. Our Technically, the Great Recession was over. advertisers. Full-time employment was little changed in January, but has trended up over the last six months. The Fed had no choice but to lower interest rates to end the recession, but that set the stage for the truly runaway inflation of the late Oil prices skyrocketed again in 1979 caused by disruptions to the oil supply during the Meanwhile, inflation had grown to a staggering 13.5 percent and the Fed had no choice but to raise interest rates, which put the brakes on the booming late 1970s economy. Second quarter GDP dropped 0.3%.Hong Kong becomes the second Asian economy to tip into recession, its exports hit by weakening global demand. reporters create honest and accurate content to help you make the Ten of those companies would need $185 billion in additional capital funding to buffer them from bad economic conditions.Obama signs into law the Helping Families Save Their Homes Act of 2009, which raises the FDIC's deposit insurance coverage from $100,000 to $250,000 per depositor until Jan. 1, 2014.GM files for Chapter 11 bankruptcy protection. Full-year growth was recorded at 7.8%.Venezuela's economy grew 0.6% in the last quarter of 2010, technically leaving the recession after six quarters.Portugal slips into double-dip recession after the economy contracted by 0.7% in the first quarter of 2011, with a 0.6% contraction in the last quarter of 2010.Romania officially leaves the recession after 2 years following economic growth of an annualised 1.6% in the first quarter.As house prices remain low in the US housing market, significant foreign purchases have been made by the Canadians, Chinese and Europeans (mainly French, Spanish and Italian), seeing total spending around US$16 billion.Recovery for Scotland from the recession is stifled by the risk of stagnation from a weak rate of recovery in exports and business investments.After figures showed that the 0.5% contraction in Q4 2010 was cancelled out by a 0.5% rise in Q1 2011, growth estimates from the ONS suggest that the growth in the UK is slowing down, after figures of 0.2% GDP increase was posted. It took years to correct the easy-money policies and lax standards of Wall Street.

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