Monday, July 30, 2012

Crisis in September?

For some reason, banking crises almost always start in September.  See: http://www.imf.org/external/pubs/ft/wp/2012/wp12163.pdf

Some historical September dates:
September 23, 1998 - LTCM crash. LTCM was providing returns of 40% annually when suddenly their economic theories quit working. The Fed bailed them out, fearing a systemic collapse.
September 11, 2001 - The stock market closed for a week and when it opens, drops 14%.
September 15, 2008 - Lehman Bros collapsed, the stock market quickly drops 5%, the Fed takes over AIG, and Congress rushes through a $700 billion bailout.
Late September 2008 - Icelandic financial crisis begins

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