The first half of the year was marked by record prices for food and fuel around the world. The year closed with a financial meltdown that threatened not just the U.S. economy but the global one.
In Asia, the price of rice rose from about $400 a ton to more than $1,000 a ton. American big box stores like Costco and Sam's Club had a hard time keeping rice in stock, even as retail prices soared. In America, the price of a gallon of regular unleaded peaked at more than $4 a gallon.
In March, Wall Street giant Bear Stearns failed, followed by IndyMac Bank in July and Lehman Brothers, Merrill Lynch and Washington Mutual (WaMu) in September. In September, the Federal Reserve stepped in to take over Fannie Mae and Freddie Mac as well as one of the world's largest insurance firms, AIG (American International Group). In October, the Fed announced it would lend money directly to U.S. corporations.
Congress acted in February by approving a $168 billion "stimulus" package that provided rebate checks of up to $xxx for American taxpayers. In October, Congress approved a $700 billion bailout plan for the nation's financial system. In December, Congress stalled when trying to approve a much smaller bailout for Detroit's automakers.
President-elect Barack Obama will propose another $875 billion fiscal "stimulus" package after he assumes office in January 2009.
President Bush explained away the meltdown -- "Wall Street got drunk" (per Time magazine) -- but critics pointed fingers at lax regulation.
Learn more:
In Asia, the price of rice rose from about $400 a ton to more than $1,000 a ton. American big box stores like Costco and Sam's Club had a hard time keeping rice in stock, even as retail prices soared. In America, the price of a gallon of regular unleaded peaked at more than $4 a gallon.
In March, Wall Street giant Bear Stearns failed, followed by IndyMac Bank in July and Lehman Brothers, Merrill Lynch and Washington Mutual (WaMu) in September. In September, the Federal Reserve stepped in to take over Fannie Mae and Freddie Mac as well as one of the world's largest insurance firms, AIG (American International Group). In October, the Fed announced it would lend money directly to U.S. corporations.
Congress acted in February by approving a $168 billion "stimulus" package that provided rebate checks of up to $xxx for American taxpayers. In October, Congress approved a $700 billion bailout plan for the nation's financial system. In December, Congress stalled when trying to approve a much smaller bailout for Detroit's automakers.
President-elect Barack Obama will propose another $875 billion fiscal "stimulus" package after he assumes office in January 2009.
President Bush explained away the meltdown -- "Wall Street got drunk" (per Time magazine) -- but critics pointed fingers at lax regulation.
Learn more: