13 Biggest Federal Reserve/Treasury Moves in 2008-2009

Introduction:

2008 - early 2009 was an unprecedented period. The crisis in the financial and housing sectors, that later spread to the rest of the economy, blurred the lines between public and private enterprise. The Federal Reserve went from being the lender of last resort to being the only lender available. The Treasury Department and the Fed formed a very tight working relationship (some say would say too tight given the independence the central bank is supposed to have from the government administration). Capitalism was brought to its knees and openly begged for the political figures in Washington, DC to save the day.

We look back at some of the key steps that the Fed and the Treasury took over this time period, most of which were unthinkable before the crisis began. While the jury is still out on the long-term impact and success of these moves, at least in the short-term, they managed to calm the waters. There is no doubt that these moves will be discussed for years to come and will dot the textbooks of future economics and public policy students.