2008 Financial Crisis by Forrest Peloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf The untold story en-us 2022-06-04 17:51:43 UTC 2025-11-16 01:38:21 UTC hello@padlet.com What it was like before January 2008 receiving a loan for a House ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211014399 Anyone could get a loan because there were no background checks on your income. This caused an immense rush of loans being distributed and every stockbroker made it a competition to see how many loans they could give out. They were practically giving houses away.]]> 2022-06-04 18:07:45 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211014399 People couldn't pay their mortgage and houses were getting cheaper. ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211016769 The organization was not designed for houses to be going down in price.  Everything was built on house prices constantly increasing.  Because of this bear Stearns lost 50 percent of their stock.  If they couldn't get funded for their loss
they were going to create a domino affect on the American economy.


]]> 2022-06-04 18:14:06 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211016769 The Tax Rebate Bill on February 13th ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211019964 Home sales continued to plummet.  Foreclosures rose 57% from a year previous and the home resale price was down 8.2%.  Because of this. President Bush signed a tax rebate bill to help the struggling housing market. The bill increased limits for Federal Housing Administration loans.]]> 2022-06-04 18:23:23 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211019964 April 7th-21st ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211021738
The Federal reserve again began adding to its Term Auction Facility. They added $50 billion on April 7 and another $50 billion on April 21.


]]> 2022-06-04 18:28:42 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211021738 June 2008 ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211022729 By June the Federal Reserve auctions totaled $1.2 trillion. The Federal Reserve lent $225 billion through its Term Auction Facility. It was a temporary tactic of adding liquidity.]]> 2022-06-04 18:31:38 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211022729 July 2008 ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211027502 The financial stress from Wall Street was spreading to other organizations.  Fannie Mae's and Freddie Mac's shares started to spiral down.  Freddie and Fannie were the backbone of the US mortgages. On July 11th the IndyMac bank also fails.  The Federal Deposit Insurance Corporation only insured deposits up to $100,000 which was later raised to $250,000.]]> 2022-06-04 18:45:25 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211027502 July 30: The Housing and Economic Recovery Act ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211028779 Congress passed the Housing and Economic Recovery Act on July 30. It gave the Treasury Department authority to guarantee as much as $25 billion in loans held by Fannie Mae and Freddie Mac. ]]> 2022-06-04 18:48:37 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211028779 September 15: Lehman Brothers Bankruptcy Dominos into a global panic ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211031408 Paulsen urged Lehman Brothers to find a buyer but only Bank of America and British Barclays were interested.  The bank couldn't be nationalized and Bank of America wanted 65-70 billion for the anticipated losses in order to purchase Lehman Brothers.  Paulsen said no and and the Lehman Brothers filed bankruptcy.  This pulled the stock market down and drastically increased treasury bond as investors fled.]]> 2022-06-04 18:56:17 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211031408 September 16: The Federal Reserve Buys AIG for $85 Billion ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211034362
The AIG turned to the Federal Reserve for emergency funding. The company had insured trillions of dollars of mortgages throughout the entire world. AIG took risks with cash from supposedly ultra-safe insurance policies.  Using this they then used it to boost profits by offering unregulated credit default swaps. They didn't have enough cash on hand to pay out all the customers trying to take out money.

]]> 2022-06-04 19:04:26 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211034362 John McCain's Meeting on September 25th ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211037879 John McCain called a meeting with high ranking White House personnel. Obama stated a well thought out plan and when it came to McCains turn he didn't offer anything in return. People assumed he never had one to begin with and in the end it caused major backlash from peers in the meeting.]]> 2022-06-04 19:14:40 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211037879 September 20: Treasury Submits a Legislation to Congress ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211039677 Paulson submits a three-page document to Congress on.  Which was asking that it approves a $700 billion bailout to the banks, hedge funds, and pension funds. Paulson wanted to take the stress off these organizations in order to(what he thought) save the US economy from collapsing. ]]> 2022-06-04 19:19:36 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211039677 October 3rd Bailout ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211041873 After previous attempts congress passed the $700 billion bank bailout bill. Which allowed the Treasury to buy shares of banks financial support. It was the fastest way to unfreeze the frozen financial system. The Troubled Asset Relief Program funds also bailed out AIG and auto companies. It restored credit markets and helped homeowners avoid foreclosure.]]> 2022-06-04 19:25:53 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211041873 October 21: The Fed Lends $540 Billion ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211043035 From August $500 billion was redempted from money market funds and the Federal Reserve lent $540 billion to them to pay.]]> 2022-06-04 19:29:17 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211043035 November 4th Election ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211044784 Obama is elected and upon election receives something to the worst US economy in history. The first few weeks were rough for Obama as he faced many backlashes from the struggling economy. ]]> 2022-06-04 19:34:14 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211044784 November 21: An FDIC Guarantee ForrestPeloquin https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211045708 The FDIC agreed to guarantee up to $1.3 trillion in loans that banks made to other banks. From this loan about 1.2 million unemployed workers received 3 months of benefits. ]]> 2022-06-04 19:36:47 UTC https://padlet.com/ForrestPeloquin/86a3241iuy8c1xpf/wish/2211045708