On 9 August 2007 French bank BNP Paribas froze three of its US funds due to US subprime mortgage problemsValue of mortgage debt crumbled, and banks stopped lending to each otherBailouts came thick and fast in 2008 as investors lost confidence in the banking systemParallels with today as volatility hits stocks, housing markets start to cool, and an energy crunch causes a shockCentral banks now lack the tools to alleviate the downturn and instead are focused on bringing down inflationInterest rates were 5.75% in August 2009 with room to fall, today they are at 1.25% and are set to rise furtherBa…
