An Unwelcome Anniversary: Credit Crunch Turns One

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Over the weekend, the Brit papers memorialized the one year anniversary of the start of the credit crunch. Europeans tend to date the credit crunch more or less from August 9, 2007, the day the European Central Bank injected €94.8 billion into the financial system. Of course, that's a little bit like dating the start of a sexually transmitted disease from when you start taking antibiotics, when you started treating the condition rather than when you contracted it or began showing symptoms.
The Times notes that HSBC noted that in February 2007 Michael Geoghegan issued a profit warning for the first time in the 142-year history of the bank in February 2007, tying the hard times directly to signals of stress in the US mortgage market.
The Telegraph describes August 9th as the day" money markets across the globe shut down on fears that the US sub-prime mortgage crisis was about to spin out of control." (To continue the analogy, that's when it became US credit markets had been spreading its STD everywhere.)

The Financial Times looks
to Hiroshi Nakaso, a senior official at the Bank of Japan, who began warning banking contacts privately in July 2007 about the striken state of US financial institutions. "I see striking similarities in what I see today with the early stages of our own financial crisis [in Japan] more than a decade ago," he said, according to the Times.
Happy anniversary credit crunch!

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