On this day, September 29, 2008, the stock market crashed, due to Congressional inaction.

[mahatmakanejeeves]

Last edited Sun Sep 29, 2024, 09:54 AM - Edit history (1)

https://en.wikipedia.org/wiki/September_29

Edited to note new wording at Wikipedia. Thanks and hat tip, Voltaire2, for the improvement in accuracy.

• 2008 – The stock market crashes after the first United States House of Representatives vote on the Emergency Economic Stabilization Act fails, leading to the Great Recession.

• 2008 – The stock market crashes after the first United States House of Representatives vote on the Emergency Economic Stabilization Act fails during the beginning stages of the Great Recession.

This requires some elaboration.

2007–2008 financial crisis

{snip}

History

{snip}

Timeline

{snip}

• September 29, 2008: By a vote of 225–208, with most Democrats in support and Republicans against, the House of Representatives rejected the Emergency Economic Stabilization Act of 2008, which included the $700 billion Troubled Asset Relief Program. In response, the DJIA dropped 777.68 points, or 6.98%, then the largest point drop in history. The S&P 500 Index fell 8.8% and the Nasdaq Composite fell 9.1%. Several stock market indices worldwide fell 10%. Gold prices soared to $900/ounce. The Federal Reserve doubled its credit swaps with foreign central banks as they all needed to provide liquidity. Wachovia reached a deal to sell itself to Citigroup; however, the deal would have made shares worthless and required government funding.

{snip}

Wed Sep 25, 2024: On this day, September 25, 2008, Washington Mutual was placed into receivership.

Wed Sep 18, 2024: On this day, September 18, 2008, Ben Bernanke requested a $700 billion fund to acquire toxic mortgages.

Mon Sep 9, 2024: On September 7, 2008, the Feds took over Fannie Mae and Freddie Mac.

Fri Sep 29, 2023: On September 25, 2008, Washington Mutual was placed into receivership.

Fri Sep 29, 2023: On this day, September 29, 2008, the stock market crashed, due to Congressional inaction.

Mon Sep 18, 2023: On September 18, 2008, Ben Bernanke requested a $700 billion fund to acquire toxic mortgages.

[dutch777]

1. Good point to make in campaign ads against the Repugs running

[eppur_se_muova]

6. But but but Repugs are *better* for the economy !

Great-grandpappy always said so !

[Voltaire2]

2. The 2008-10 Great Recession was not

caused by a vote in Congress. There was a financial collapse primarily the result of a deregulated and absurdly over leveraged mortgage market.

[mahatmakanejeeves]

3. This is not about the Great Recession. This is about the decline in the DJIA in response to Congress's failure.

In response, the DJIA dropped 777.68 points, or 6.98%, then the largest point drop in history.

And good morning.

[Voltaire2]

4. Did you read your post?

“leading to the Great Recession.”

[mahatmakanejeeves]

5. You're right. Wikipedia has revised the wording of that. I will do that now too.

Thank you for pointing that out. I try to edit these posts every year, but I don't catch everything.

Thanks again for holding my feet to the fire.