We invite you to use Reuters RSS feeds to add Reuters definitive news and video headlines to your feed reader or blog, free of charge, for individual, non-commercial use. Bit by bit, the real picture slowly developed and by the time 2007 was over, three things had happened, 1) the sub-prime market had nearly dried up, only a total of $200 billion in loans were made that year; mostly in the early part of 2007, 2) the recession of 2008 officially started in December 2007, and 3) our snow slide had just turned into a minor avalanche, but, it was only going to get worse, much worse.
While this titanic struggle was taking place, the Federal Reserve Chairman and President Bush were telling America everything was just fine, thank you, only a little hiccup, not to worry; and the stock market kept surging, housing prices kept falling, the number of normal mortgage loans slowed down, but not subprime loans, not quite yet; thus ended 2006.
On Nov 27, 2007, the stock market reverses on 1) news that the Fed might cut rates again, 2) Citigroup got a $7.5 billion loan from Abu Dhabi, 3) oil prices start falling as the economic crises starts sinking in with the speculators, 4) a freeze in sub-prime interest rates, 5) the last of good unemployment statistics, and 6) good business sector earnings reports.
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