Financial Crisis Or Energy Shock

Financial Crisis Or Energy Shock

Before the Beginning

Like all earlier repeated issues of booms and busts, the germs of the subprime disintegration were sown as long as extraordinary times. In 2001, the U.S. economic procedure qualified a soft, short-lived recession. Although the economic procedure pleasantly withstood terrorist attacks, the bust of the dotcom bubble, and accounting scandals, the dread of recession truly preoccupied everybody's minds.

To retain recession away, the Federal Reserve reduced the Federal finance rate 11 times - from 6.5% in May 2000 to 1.75% in December 2001 - bringing ahead a swamp of liquidity ...