Waiting Until the Panic Sets In
By Sy Harding
As the downturn worsened severely in 2008, governments around the world finally jumped in with massive panicked rescue efforts.
In March, 2008 there was the $29 billion bailout of Bear Stearns, in May the $178 billion in stimulus checks to consumers, in July the $300 billion for at-risk homeowners, in September the $25 billion bailout of automakers, and the $200 billion bailout of mortgage provider Fannie Mae, and in October the $700 billion bailout of banks.
The efforts continued after the Obama Administration came in, with the $787 billion ‘average American’ stimulus (cash for clunkers, tax rebates to home-buyers, etc.) in February, 2009, followed in March by the $1 trillion additional bank bailout, and in April by the global G-20 nation $1 trillion global stimulus measures.
Finally global economies, which had reached the point of looking over the abyss into a potential second global Great Depression, began to pull back from the brink. And by July, 2009 the ‘Great Recession’ had ended and the economy began to grow again. The stock market, which always moves three to six months ahead of the economy, had already bottomed in March, 2009 and was in its next bull market.