September 29th

On September 29th, 2008, the global financial crisis took a significant turn when the U.S. House of Representatives rejected the proposed $700 billion financial bailout package, known as the Troubled Asset Relief Program (TARP).

The TARP was designed to address the severe financial turmoil that had emerged in the United States and had begun to affect global markets. It aimed to stabilize the banking sector by allowing the U.S. government to purchase troubled assets from financial institutions, injecting much-needed liquidity into the system.

The rejection of the TARP by the House of Representatives initially caused a sharp drop in stock markets and raised concerns about the potential consequences for the global economy. However, a revised version of the bill was later passed by Congress and signed into law by President George W. Bush in early October.

The global financial crisis of 2008, triggered by the collapse of Lehman Brothers and the subsequent credit freeze, had profound and lasting effects on the world economy. It led to a deep recession, financial sector reforms, and changes in economic policies across the globe, making it one of the most significant financial crises in modern history.