Eleven Year Anniversary

Today is the anniversary of one of the earliest events marking the start of the financial crisis eleven years ago and the beginning of the Great Recession. 

On February 13, 2008 President Bush signed the Economic Stimulus Act of 2008 approving $168 billion tax rebates. 

The 2006 housing market slowdown had affected the economy and the Bush tax rebates were an attempt to prevent a recession. Unfortunately, it was late summer before any checks arrived and too late to prevent the recession. 

By this time Libor rates had risen above the fed funds rate resulting in banks that were afraid to lend to each other. Furthermore, those banks had too many subprime mortgages on their books including worthless mortgage-backed securities.  The economic skies began to darken as storm clouds gathered.