Facts And Myths About Financial Crisis Of 2008
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5000 2001
6000
7000
8000
9000
10000
2002
2003
2004
2005
Figure 1A: Bank Credit
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2006
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
5000
6000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
7000
Jul 30
8000
Aug 13
9000
Aug 27
10000
Figure 1B: Bank Credit in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
3000 2001
4000
5000
6000
7000
8000
2002
2003
2004
2005
2006
Figure 2A: Loans and Leases
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
3000
4000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
5000
Jul 30
6000
Aug 13
7000
Aug 27
8000
Feb 27
Figure 2B: Loans and Leases in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
800 2001
1000
1200
1400
1600
2002
2003
2004
2005
2006
Figure 3A: Commercial and Industrial Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
800
1000
Bear Stearns fails
Jul 30
1200
Aug 13
1400
Aug 27
1600
Figure 3B: Commercial and Industrial Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
500 2001
600
700
800
900
2002
2003
2004
2005
2006
Figure 4A: Consumer Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
500
600
Bear Stearns fails
Jul 30
700
Aug 13
800
Aug 27
900
Feb 27
Figure 4B: Consumer Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
200 2001
300
400
500
600
2002
2003
2004
2005
2006
Figure 5A: Interbank Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
200
300
Bear Stearns fails
Jul 30
400
Aug 13
500
Aug 27
600
Feb 27
Figure 5B: Interbank Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
100 2001
200
300
400
500
600
700
800
900
2002
2003
2004
2005
Financial Nonfinancial
2006
Figure 6A: Commercial Paper Outstanding
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Jan 30
Jan 16
Jan 02
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
100
200
300
400
Bear Stearns fails
Feb 13
500
Feb 27
600
Financial Nonfinancial
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
700
Jul 30
800
Aug 13
900
Aug 27
billions
Figure 6B: Commercial Paper Outstanding in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
2002
2003
2004
AA Financial AA Nonfinancial A2/P2 Nonfinancial
2005
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
0.00 2001
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2006
Figure 7A: Commercial Paper 90 Day Rate
2007
2008
Jun 18
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Jan 16
Jan 02
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
0.00
1.00
Bear Stearns fails
Jan 30
2.00
Feb 13
3.00
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
4.00
Jul 30
5.00
Feb 27
AA Financial AA Nonfinancial A2/P2 Nonfinancial
Aug 13
6.00
Aug 27
7.00
Figure 7B: Commercial Paper 90 Day Rate in 2008
Oct 08 Sep 24
Sep 10 Jul 02
3000 2001
4000
5000
6000
7000
8000
2002
2003
2004
2005
Figure 8A: Deposits
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2006
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
3000
4000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
5000
Jul 30
6000
Aug 13
7000
Aug 27
8000
Figure 8B: Deposits in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
Tbill 3mo
Libor 3mo
2005
2006
Figure 9A: Libor and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
Tbill 3mo
Libor 3mo
May 20
4
Jun 03
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Feb 26
Feb 12
7
Mar 11
Figure 9B: Libor and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
OIS 1mo
Libor 1mo
2005
2006
Figure 10A: Libor and OIS One Month Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
OIS 1mo
Libor 1mo
May 20
4
Jun 03
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Mar 11
Feb 26
Feb 12
7
Figure 10B: Libor and OIS One Month Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
8
2003
2004
Tbill 3mo
BBB
2005
2006
Figure 11A: BBB and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
4
Tbill 3mo
BBB
May 20
5
Jun 03
6
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
7
Bear Stearns fails
Aug 26
Feb 26
Feb 12
8
Mar 11
Figure 11B: BBB and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
Tbill 3mo
AAA
2005
2006
Figure 12A: AAA and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
4
Tbill 3mo
AAA
Jun 03
May 20
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Feb 26
Feb 12
7
Mar 11
Figure 12B: AAA and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
8
2003
2004
Effective Fed Funds Rate
Libor 1mo
2005
2006
Figure 13A: Libor and Fed Funds Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
Effective Fed Funds Rate
Jun 03
May 20
May 06
4
Libor 1mo
Jun 17
5
Jul 01
6
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
7
Bear Stearns fails
Aug 26
Mar 11
Feb 26
Feb 12
8
Figure 13B: Libor and Fed Funds Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Apr 22
Apr 08
Mar 25
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5000 2001
6000
7000
8000
9000
10000
2002
2003
2004
2005
Figure 1A: Bank Credit
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2006
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
5000
6000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
7000
Jul 30
8000
Aug 13
9000
Aug 27
10000
Figure 1B: Bank Credit in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
3000 2001
4000
5000
6000
7000
8000
2002
2003
2004
2005
2006
Figure 2A: Loans and Leases
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
3000
4000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
5000
Jul 30
6000
Aug 13
7000
Aug 27
8000
Feb 27
Figure 2B: Loans and Leases in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
800 2001
1000
1200
1400
1600
2002
2003
2004
2005
2006
Figure 3A: Commercial and Industrial Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
800
1000
Bear Stearns fails
Jul 30
1200
Aug 13
1400
Aug 27
1600
Figure 3B: Commercial and Industrial Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
500 2001
600
700
800
900
2002
2003
2004
2005
2006
Figure 4A: Consumer Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
500
600
Bear Stearns fails
Jul 30
700
Aug 13
800
Aug 27
900
Feb 27
Figure 4B: Consumer Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
200 2001
300
400
500
600
2002
2003
2004
2005
2006
Figure 5A: Interbank Loans
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 13
Jan 30
Jan 16
Jan 02
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
200
300
Bear Stearns fails
Jul 30
400
Aug 13
500
Aug 27
600
Feb 27
Figure 5B: Interbank Loans in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
100 2001
200
300
400
500
600
700
800
900
2002
2003
2004
2005
Financial Nonfinancial
2006
Figure 6A: Commercial Paper Outstanding
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
billions
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Jan 30
Jan 16
Jan 02
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
100
200
300
400
Bear Stearns fails
Feb 13
500
Feb 27
600
Financial Nonfinancial
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
700
Jul 30
800
Aug 13
900
Aug 27
billions
Figure 6B: Commercial Paper Outstanding in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
2002
2003
2004
AA Financial AA Nonfinancial A2/P2 Nonfinancial
2005
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
0.00 2001
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2006
Figure 7A: Commercial Paper 90 Day Rate
2007
2008
Jun 18
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Jan 16
Jan 02
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/cp/
0.00
1.00
Bear Stearns fails
Jan 30
2.00
Feb 13
3.00
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
4.00
Jul 30
5.00
Feb 27
AA Financial AA Nonfinancial A2/P2 Nonfinancial
Aug 13
6.00
Aug 27
7.00
Figure 7B: Commercial Paper 90 Day Rate in 2008
Oct 08 Sep 24
Sep 10 Jul 02
3000 2001
4000
5000
6000
7000
8000
2002
2003
2004
2005
Figure 8A: Deposits
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
billions
2006
2007
2008
Jun 04
May 21
May 07 Apr 23
Apr 09
Mar 26
Mar 12
Feb 27
Feb 13
Jan 30
Jan 16
Jan 02
billions
Source: Federal Reserve Board, http://www.federalreserve.gov/releases/h8/
3000
4000
Bear Stearns fails
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Jul 16
5000
Jul 30
6000
Aug 13
7000
Aug 27
8000
Figure 8B: Deposits in 2008
Oct 08 Sep 24
Sep 10 Jul 02
Jun 18
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
Tbill 3mo
Libor 3mo
2005
2006
Figure 9A: Libor and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
Tbill 3mo
Libor 3mo
May 20
4
Jun 03
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Feb 26
Feb 12
7
Mar 11
Figure 9B: Libor and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
OIS 1mo
Libor 1mo
2005
2006
Figure 10A: Libor and OIS One Month Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
OIS 1mo
Libor 1mo
May 20
4
Jun 03
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Mar 11
Feb 26
Feb 12
7
Figure 10B: Libor and OIS One Month Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
8
2003
2004
Tbill 3mo
BBB
2005
2006
Figure 11A: BBB and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
4
Tbill 3mo
BBB
May 20
5
Jun 03
6
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
7
Bear Stearns fails
Aug 26
Feb 26
Feb 12
8
Mar 11
Figure 11B: BBB and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
2003
2004
Tbill 3mo
AAA
2005
2006
Figure 12A: AAA and Tbill Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
4
Tbill 3mo
AAA
Jun 03
May 20
5
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
6
Bear Stearns fails
Aug 26
Feb 26
Feb 12
7
Mar 11
Figure 12B: AAA and Tbill Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Jul 01
Jun 17
May 06 Apr 22
Apr 08
Mar 25
2002
Source: Bloomberg
0 2001
1
2
3
4
5
6
7
8
2003
2004
Effective Fed Funds Rate
Libor 1mo
2005
2006
Figure 13A: Libor and Fed Funds Rates
2007
2008
Jan 29
Jan 15
Jan 01
Source: Bloomberg
0
1
2
3
Effective Fed Funds Rate
Jun 03
May 20
May 06
4
Libor 1mo
Jun 17
5
Jul 01
6
Lehman Bros fails Bailout plan proposed WaMu fails Wachovia is taken over
Aug 12 Jul 29
Jul 15
7
Bear Stearns fails
Aug 26
Mar 11
Feb 26
Feb 12
8
Figure 13B: Libor and Fed Funds Rates in 2008
Oct 21
Oct 07 Sep 23
Sep 09 Apr 22
Apr 08
Mar 25
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