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). 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."
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. The decline has been compared to that of the 1929 Great Depression, which was 53% between September 1929 and March 1931.
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.
- Global financial crisis in September 2008
- Global financial crisis in October 2008
- Global financial crisis in November 2008
- Global financial crisis in December 2008
- Subprime crisis impact timeline
- Timeline of the United States housing bubble for the pre-subprime crisis timeline
- "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'. Financial Post.
- 45 percent of world's wealth destroyed: Blackstone CEO. Reuters. March 10, 2009.
- World Banks projection of June 22