Here is the experts from the CNN Subprime crisis: A timeline ; mortgages crisiswhich began to surface less than 2 years ago.
- Feb. 7, 2007 – HSBC announces anticipated losses from rising defaults of subprime mortgages in the United States.
- April 2, 2007 – New Century Financial files for bankruptcy.
In a speech to the Economic Club of New York, US President George W. Bush said that the economy was going through troubled times.
Bush said “in a free market economy there will be good times and bad times” and acknowledged “we’re going through a hard time.”
JPMorgan Chase and Federal Reserve Bank of New York agreed to provide emergency financing to cash-strapped brokerage Bear Stearns, for up to 28 days.
Bear Stearns said the move would allow it to continue normal operations. Bear Stearns is Wall Street’s 5th largest investment bank.
Bear Stearns news scattered investors, pushing the Dow Jones industrial average down more than 250 points at one point in the morning.