Bob Estevez, Investors Capital

During the month of August 2007 saw the transmission problem in the financial markets. The following is the chronological sequence of major events during the later period. 1 to August 8

In early August, Bear Stearns closes an investment fund. The company Blackstone announced its bankruptcy on August 2 and American Home Mortgage, the tenth mortgage bank in the United States, announced the dismissal of all staff on the 4th and 6th bankruptcy. Then we know that the financial crisis has reached Europe from the hand of German bank IKB, exposed to investments in subprime mortgages, which has been rescued by a public financial institution to avoid bankruptcy. That same day, National City Home Equity is declared bankrupt. 9 and August 10

On 9 and 10 August the crisis moves to all world markets, they begin to fall, especially the announcement that a major European bank, BNP Paribas, suspended three funds and the lack of liquidity “is not allows for a fair valuation of underlying assets and thus calculate a net asset value. ” Central banks in the euro area and U.S.. respond with massive injections of liquidity to calm tensions in the interbank market from the crisis. The major German bank, Deutsche Bank, also suffers a substantial loss of funds linked to real estate financing.

On Friday 10 the president of the United States, George W. Bush urges calm before the escalation of the crisis and ensure that there is liquidity in the market. The European Central Bank warned that begins “a financial crisis in several stages by puncture of the venture capital and subprime mortgages.”

Nevertheless, at the end of day 10 bankruptcy is known of another entity, in this case the Home Banc. All the world’s stock capitalization significant losses at the end of the week. Spanish Economy Minister Pedro Solbes, ruled the day 12 that the mortgage crisis in the U.S.. will affect Spain. From 11 to August 19

Faced with what they see as a lack of liquidity in the system, major central banks initiated a series of injections (by way of fine tuning or fine tuning) to several hundred million in different currencies. The injections of liquidity, coordinated the Fed, the European Central Bank, the Bank of Canada and Bank of Japan continues 13, 14 and 15 August.