Financial and Mortgage Crisis Timeline
Commercial and investment banks used their size and money to make campaign contributions that allowed them to evade any meaningful effort to impose common sense and transparent risk controls in the public interest, known as regulation. One of the first regulations attacked dated from the Great Depression. This was the Glass-Steagall Act of February 1932, a law designed to separate commercial and industrial banking. A lack of ethics caused the financial crisis of 2007 and 2008. The crisis resulted in a decline of $19 trillion in US GDP, according to the US Treasury, and sparked a global economic decline.
The charts below - Timeline, and Global Impact, show the untold story of the 2008 financial crisis, the effects and the causes of the crisis, how a lack of regulation and greed created the crisis and other consequences of the 2008 financial crisis and recession. We also show who is most responsible for the financial crisis while providing a brief summary of the crisis.
Global Market Turmoil and Financial Crisis Calendar, 2009
In our pro se legal brief in the US Court of Appeals for the DC Circuit, we cited evidence that growing financial market malfeasance greatly exacerbated risks in financial markets, and predicted that the country would, as a result of this decision, be impacted by a large financial crisis.) As a result, banks, commercial and industrial (the latter known as investment banks) could combine operations to create products in fundamentally unstable ways.
Markets are ruled by two emotions: fear and greed, and these institutions got greedy, very greedy. They created financial products that served no real purpose, other than to generate profit for the bank. To keep customers (their only regulator) from understanding the bank's true intent, they made these products horribly complicated. These products were, in part, simple bets. These bets were layered on top of each other until only the product designers had any hope of realistically estimating what little value actually existed in the products.
Commercial and investment banks came to act as if they understood that giving these products a veneer of social utility would help them hide their true motivation, so they tied a small fraction of these bets, now known as derivatives, to subprime lending and passed the bundle off as the invisible hand of the free market at work. See: What happened. What now. April 22, 2009.
Commercial and investment banks came to act as if they understood that giving these products a veneer of social utility would help them hide their true motivation, so they tied a small fraction of these bets, now known as derivatives, to subprime lending and passed the bundle off as the invisible hand of the free market at work. See: What happened. What now. April 22, 2009.
According to Census Bureau data, in the aftermath of the financial crisis, "Black median net worth decreased 61 percent from 2005 to 2009. Whites, in contrast, lost 21 percent of their wealth." The real power of impact investing lies in its ability to reverse this loss.
