According to the U.S. National Bureau of Economic Research, provided by Wikipedia, the Great Recession started in December 2007 and ended in June 2009. A recession created by the housing market bubble bursting in 2006, resulting in the sub-prime mortgage losses in 2007.
According to “Bankrate,” between September and October 2008, the federal government took actions to address the collapse.
On Sept. 8, 2008, the U.S. Treasury seized control of mortgage giants Fannie Mae and Freddie Mac and pledged a $200 billion cash injection to help the companies cope with mortgage default losses.
About a week later the government bailed out American International Group Inc. (AIG) with $85 billion.
The Fed refused to save Lehman Brothers and the company was forced to file for bankruptcy. Some of the largest financial institutions were on the verge of collapse as the mortgage market melted down. As the crisis hit the global market, the credit freeze spread.
The Treasury and the Federal Reserve began working on a $700 billion bailout plan.
President George W. Bush signed the bailout plan into law Oct. 3.
Weeks later, on Oct. 29, the Fed cut the key interest rate to 1 percent.
Barack Obama took office Jan. 20, 2009. Lee Pitzer implies that when Obama became president, he single-highhandedly took drastic action and met the challenge. Obama merely followed the actions that had already been implemented.
Pitzer’s “Obama Deserves Our Gratitude” can’t be addressed in one letter, more to come ...
Russell C. Fette, Collinsville