Global financial crisis in 2009

This article only provides a detailed description of the financial market events of 2009. For the background information, causes, effects and policy responses see Financial crisis of 2007–08. For a timeline see Subprime crisis impact timeline.

On the evening of January 18, the Danish Parliament agreed to a financial package worth 100 billion Danish kroner (17.6 billion USD).^[1] In response, markets panicked yet again. On January 22, the editorial board of The Christian Science Monitor wrote that the four largest U.S. banks "have lost half of their value since January 2."^[2]

The two-month period from January 1-February 27 represented the worst start to a year in the history of the S&P 500 with a drop in value of 18.62%. By March 2, the Dow Jones Industrial Average Index had dropped more than 50% from its October 2007 peak.^[3] The decline has been compared to that of the 1929 Great Depression, which was 53% between September 1929 and March 1931.^[4]

On March 6, the Bank of England announced up to 150 billion pounds of quantitative easing, increasing the risk of inflation.^[5]

In March 2009, Blackstone Group CEO Stephen Schwarzman said that up to 45% of global wealth had been destroyed by the global financial crisis.^[6]

By March 9, 2009, the Dow had fallen to 6440, a percentage decline exceeding the pace of the market's fall during the Great Depression and a level which the index had last seen in 1996. On March 10, 2009, a countertrend bear market rally began, taking the Dow up to 8500 by May 6, 2009. Financial stocks were up more than 150% during this rally. By May 9, financial stocks had rallied more than 150% in just over two months.

On June 22 the World Bank projected that the global production for 2009 would fall by 2.9%, the first decline since the second world war.^[7]

References[]

^ "Denmark agrees on 13.4-bln-euro line of credit to banks: govt". France 24. 2009. Retrieved 2009-01-19.
^ "Obama's First Crisis: Dud Banks", The Christian Science Monitor (January 22, 2009)
^ Dow Down 50% Since Peak, Major Indices Approach New Lows, 27 Feb 2009, CNBC.com
^ Steep Market Drops Highlight Despair Over Rescue Efforts
^ BoE cuts rate to 0.5%, embraces 'quantitative easing' Archived 2009-04-16 at the Wayback Machine. Financial Post.
^ 45 percent of world's wealth destroyed: Blackstone CEO. Reuters. March 10, 2009.
^ World Banks projection of June 22

v t Financial crises
Banking panic Commodity price shocks Credit crunch Credit cycle Currency crisis Debt crisis Energy crisis Flash crash Hyperinflation Liquidity crisis Minsky moment Stock market crash
Pre-1000	Crisis of the Third Century (235–284 CE)
1000–1760	Great Bullion Famine (c. 1400–c. 1500) The Great Debasement (1544–1551) Dutch Republic stock market crashes (c. 1600–1760) Kipper und Wipper (1621–1623) Tulip mania crash (1637) South Sea bubble crash (1720) Mississippi bubble crash (1720)
1760–1840	Amsterdam banking crisis of 1763 Bengal bubble crash (1769–1784) Crisis of 1772 Dutch Republic financial collapse (c. 1780–1795) Panic of 1785 Copper Panic of 1789 Panic of 1792 Panic of 1796–1797 Danish state bankruptcy of 1813 Post-Napoleonic Irish grain price and land use shocks (1815–1816) Panic of 1819 Panic of 1825 Panic of 1837
1840–1870	European Potato Failure (1845–1856) Great Irish Famine Highland Potato Famine Panic of 1847 Panic of 1857 Panic of 1866 Black Friday (1869)
1870–1914	Panic of 1873 Paris Bourse crash of 1882 Panic of 1884 Arendal crash (1886) Baring crisis (1890) Encilhamento (1890–1893) Panic of 1893 Australian banking crisis of 1893 Black Monday (1894) Panic of 1896 Panic of 1901 Panic of 1907 Shanghai rubber stock market crisis (1910) Panic of 1910–1911
1918–1939	Early Soviet hyperinflation (1917–1924) Weimar Republic hyperinflation (1921–1923) Shōwa financial crisis (1927) Wall Street Crash of 1929 Panic of 1930
1973–1982	1970s energy crisis (1973–1980) 1973 oil crisis 1973–1974 stock market crash Secondary banking crisis of 1973–1975 Steel crisis (1973–1982) Latin American debt crisis (1975–1982) 1976 British sterling crisis 1979 oil crisis Brazilian hyperinflation (1980–1982)
1982–2007	Brazilian hyperinflation (1982–1994) Souk Al-Manakh stock market crash (1982) Chilean crisis of 1982 1983 Israel bank stock crisis Black Saturday (1983) Savings and loan crisis (1986–1995) Black Monday (1987) 1988–1992 Norwegian banking crisis Japanese asset price bubble crash (1990–1992) Rhode Island banking crisis (1990–1992) 1991 Indian economic crisis 1990s Swedish financial crisis (1991–1992) 1990s Finnish banking crisis (1991–1993) 1990s Armenian energy crisis (1991–1995) Cuban Special Period (1991–2000) Black Wednesday (1992) Yugoslav hyperinflation (1992–1994) 1994 bond market crisis Venezuelan banking crisis of 1994 Mexican peso crisis (1994–1996) 1997 Asian financial crisis 1998 Russian financial crisis 1998–1999 Ecuador economic crisis Samba effect (1999) Dot-com bubble crash (2000–2004) 2001 Turkish economic crisis South American economic crisis of 2002 2002 Uruguay banking crisis 2003 Myanmar banking crisis 2004 Argentine energy crisis 2007 Chinese stock bubble crash Zimbabwean hyperinflation (2007–)
2007–present	Financial crisis of 2007–2008 Subprime mortgage crisis U.S. bear market of 2007–2009 Global financial crisis in September 2008 Global financial crisis in October 2008 Global financial crisis in November 2008 Global financial crisis in December 2008 2008 Latvian financial crisis 2008–2009 Belgian financial crisis 2008–2009 Russian financial crisis 2008–2009 Ukrainian financial crisis 2008–2011 Icelandic financial crisis 2008–2011 Irish banking crisis 2008–2014 Spanish financial crisis Global financial crisis in 2009 Blue Monday Crash 2009 European debt crisis Greek government-debt crisis 2009 Dubai debt standstill Venezuelan banking crisis of 2009–2010 2010–2014 Portuguese financial crisis Energy crisis in Venezuela (2010–) August 2011 stock markets fall 2011 Bangladesh share market scam 2012–2013 Cypriot financial crisis 2013 Chinese banking liquidity crisis Venezuela economic crisis (2013–) 2014–2016 Brazilian economic crisis Puerto Rican government-debt crisis (2014–) 2014–2016 Russian financial crisis 2015–2016 Chinese stock market turbulence 2015–2016 stock market selloff Brexit stock market crash (2016) Venezuelan hyperinflation (2016–) 2017 Sri Lankan fuel crisis Ghana banking crisis (2017–2018) 2018–2022 Turkish currency and debt crisis (2018–) Lebanese liquidity crisis (2019–) COVID-19 pandemic (2019–) 2020–2022 Chinese property sector crisis (2020–) 2022 Russian financial crisis
List of banking crises List of economic crises List of sovereign debt crises List of stock market crashes and bear markets

Global financial crisis in 2009

See also[]

References[]