Financial Crisis Timeline: March - May 2009 (Part 6)

February 12th. 2018

March 2, 2009

 

AIG needs another $30 billion under TARP, sparking concern that bailout money is being placed in a vacuum.

 

March 9, 2009

 

An astounding waypoint has been reached in the recession, as Wall Street loses more than a decade’s worth of growth. To date, this day will mark the pinnacle of what will be Wall Street's worst day since the Great Depression.

 

The losses are staggering, as the Dow Jones industrial average sits at an unprecedented 6,547 points, the lowest in 12 years. This marks a loss of more than an entire decade’s worth of wealth.

 

March’s Staten Island Real Estate market

 

The real estate market sees a bit of improvement, at least activity wise. Sales of one and two family homes hits 190 units, which is up from the previous month’s 157 units. March’s median home sale price falls to $363,050, its lowest point in over four years. Interest rates hovered around 5% in the months prior, and home buying activity is spurred by the new $8000 first time homebuyer tax credit.

 

Apr 4, 2009

 

The economy has now shed 5 million jobs since the recession began in December 2007. The unemployment number stands at 8.5% nationwide.

 

April’s Staten Island real estate market

 

April home sales total just 167 units of one and two family homes, which is the fifth straight month of sub 200 home sales. The average sale price remained fairly steady after a 7% drop in January. Home inventory still remains very high at just over 18 months.

 

There are signs after five months the real estate market is beginning to thaw as activity perks up just a bit. The level of bad news concerning the economy seems to be abating during this time.

 

May 7, 2009

 

President Obama signs the Helping Families Save Their Homes Act of 2009, a law that increases FDIC insurance limits on bank deposits to $250,000 from $100,000. The bill also allows bankruptcy judges to change mortgage terms by lowering the interest and/or extend the term of the mortgage to no longer than 40 years. Lenders are also given incentives to create mortgage workout plans and modifications to homeowners in jeopardy of falling behind or already falling behind on their mortgages.

 

May 8 and May 12 2009

 

Huge first quarter losses are announced by Fannie Mae and Freddie Mac.

 

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