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98-722: The International Motor Show Germany or International Mobility Show Germany , in German known as the Internationale Automobil-Ausstellung ( IAA – International Automobile Exhibition), is one of the world's largest mobility trade fairs . It consists of two separate fairs, that subdivided in 1991. While the IAA Mobility displays passenger vehicles, motorcycles and bikes, the IAA Transportation specializes in commercial vehicles. Before

196-478: A crisis of ideas in mainstream economics and within the economics profession, and call for a reshaping of both the economy, economic theory and the economics profession. They argue that such a reshaping should include new advances within feminist economics and ecological economics that take as their starting point the socially responsible, sensible and accountable subject in creating an economy and economic theories that fully acknowledge care for each other as well as

294-618: A demonstration on 14 September for a change in traffic policy; the police spoke of about 15,000. The IAA Cars 2019 was the last IAA held in Frankfurt. In 2021, IAA adopted the New Mobility World concept, formats and business model, rebranded to IAA Mobility, and moved to Munich. 2019 marked the final year that the IAA hosted its automotive exhibition in Frankfurt. In the several previous years, more and more manufacturers opted out of

392-490: A minimum, there's a little 'froth' [in the U.S. housing market]...it's hard not to see that there are a lot of local bubbles". The Economist , writing at the same time, went further, saying, "[T]he worldwide rise in house prices is the biggest bubble in history". Real estate bubbles are (by definition of the word "bubble") followed by a price decrease (also known as a housing price crash ) that can result in many owners holding negative equity (a mortgage debt higher than

490-572: A resolution preventing CFTC from regulating derivatives for another six months — when Born's term of office would expire. Ultimately, it was the collapse of a specific kind of derivative, the mortgage-backed security , that triggered the economic crisis of 2008. Paul Krugman wrote in 2009 that the run on the shadow banking system was the fundamental cause of the crisis. "As the shadow banking system expanded to rival or even surpass conventional banking in importance, politicians and government officials should have realised that they were re-creating

588-770: A sharp drop in international trade , rising unemployment and slumping commodity prices. Several economists predicted that recovery might not appear until 2011 and that the recession would be the worst since the Great Depression of the 1930s. Economist Paul Krugman once commented on this as seemingly the beginning of "a second Great Depression". Governments and central banks responded with fiscal policy and monetary policy initiatives to stimulate national economies and reduce financial system risks. The recession renewed interest in Keynesian economic ideas on how to combat recessionary conditions. Economists advise that

686-510: A tool for taking excessive risks. Examples of vulnerabilities in the public sector included: statutory gaps and conflicts between regulators; ineffective use of regulatory authority; and ineffective crisis management capabilities. Bernanke also discussed " Too big to fail " institutions, monetary policy, and trade deficits. There are several "narratives" attempting to place the causes of the recession into context, with overlapping elements. Five such narratives include: Underlying narratives #1–3

784-555: A total of 570,000 visitors, with exhibits including the first HGV to have a turbo diesel engine. Just six months later, in September 1951, a second exhibition in Berlin was held, gathering 290,000 visitors. From then on, the German automobile industry bade farewell to its traditional exhibition site in Berlin and relocated the motor show completely to Frankfurt. The IAA was also rescheduled to only take place every other year. In 1989

882-463: A year, usually at geographically particularly favorable locations and in conjunction with a religious festival in order to benefit from the rush of the public. The tradition of fairs taking place in spring and autumn has been preserved in some cases until today. From the late eighteenth century, industrial exhibitions in Europe and North America became more common reflecting the technological dynamism of

980-413: Is a hypothesis that growing income inequality and wage stagnation encouraged families to increase their household debt to maintain their desired living standard, fueling the bubble. Further, this greater share of income flowing to the top increased the political power of business interests, who used that power to deregulate or limit regulation of the shadow banking system. Narrative #5 challenges

1078-418: Is the second Lufthansa hub and has many direct international flights (second to Frankfurt); Munich is home to BMW and several other high tech industries such as Apple, Google, and many start-up companies; the city has 130,000 employees working in automobile industry. The Greens -led city council and Bavarian state government have given their support, along with 2/3 of people who responded to the survey. The event

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1176-466: Is the timing. Subprime lending increased from around 10% of mortgage origination historically to about 20% only from 2004 to 2006, with housing prices peaking in 2006. Blaming affordable housing regulations established in the 1990s for a sudden spike in subprime origination is problematic at best. A more proximate government action to the sudden rise in subprime lending was the SEC relaxing lending standards for

1274-515: The American Enterprise Institute , which advocates for private enterprise and limited government, have asserted that private lenders were encouraged to relax lending standards by government affordable housing policies. They cite The Housing and Community Development Act of 1992, which initially required that 30 percent or more of Fannie's and Freddie's loan purchases be related to affordable housing. The legislation gave HUD

1372-492: The Commodity Futures Trading Commission , put forth a policy paper asking for feedback from regulators, lobbyists, and legislators on the question of whether derivatives should be reported, sold through a central facility, or whether capital requirements should be required of their buyers. Greenspan, Rubin, and Levitt pressured her to withdraw the paper and Greenspan persuaded Congress to pass

1470-573: The Great Recession , the IAA Cars 2009 proved to be a magnet for visitors. Around 850,000 people visited the auto show in Frankfurt, which greatly exceeded the target of 750,000. The headline "A Moving Experience" showed, where the mobility of tomorrow is heading. A huge number of options were presented at the IAA, ranging from the mild hybrid and the plug-in hybrid to the all-electric car, fuel cells and hydrogen power. The 2010s were marked by

1568-676: The IMF criteria for being a global recession only in the single calendar year 2009. That IMF definition requires a decline in annual real world GDP per‑capita . Despite the fact that quarterly data are being used as recession definition criteria by all G20 members , representing 85% of the world GDP , the International Monetary Fund (IMF) has decided—in the absence of a complete data set—not to declare/measure global recessions according to quarterly GDP data. The seasonally adjusted PPP ‑weighted real GDP for

1666-499: The Industrial Revolution . In the late 19th century, the concept of annual industry-wide trade shows gained traction, spreading from European manufacturing centers to North America. By the 20th century, specialized companies came into existence simply to manage the trade-show industry, and permanent trade show grounds or convention centres were established as venues that featured a rotating calendar of trade shows. In

1764-526: The VDA decided to split the IAA from now on, with a focus on passenger vehicles in odd years, and a focus on commercial vehicles in even years. The first IAA focused solely on passenger cars, held in 1991, was a huge success. A total of 1,271 exhibitors from 43 countries displayed their new products and innovations. With more than 935,000 visitors, the IAA Passenger Cars was extremely well attended. In

1862-531: The subprime mortgage crisis . The combination of banks being unable to provide funds to businesses, and homeowners paying down debt rather than borrowing and spending, resulted in the Great Recession that began in the U.S. officially in December 2007 and lasted until June 2009, thus extending over 19 months. As with most other recessions, it appears that no known formal theoretical or empirical model

1960-418: The supply chain , as well as potential suppliers and potential buyers. Generally there will be a central trade show floor with booths where people exhibit their goods or services, and throughout the day there will be seminars for continuing education on matters relevant to the industry, like best practices, trends, and regulation. There will also be some shared meals with keynote speakers, and social events in

2058-407: The 1959 show: The following introductions were made at the 1961 show: The following introductions were made at the 1963 show: The following introductions were made at the 1965 show: The following introductions were made at the 1969 show: The following introductions were made at the 1973 show: The following introductions were made at the 1977 show: The 1979 Show occurred in a tough year for

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2156-568: The 1979 show: The following introductions were made at the 1981 show: 1983 was, in most of Western Europe, a year of recovery in the new car market, as the economy recovered from the recent recession. Many important new cars were launched at Frankfurt and elsewhere during 1983. Those launched elsewhere include the Austin Maestro , Fiat Uno , Nissan Micra , Peugeot 205 and Renault 11 . The Opel Corsa (launched in Spain in September 1982)

2254-411: The 1991 show: The following introductions were made at the 1993 show: The 1995 show ran from 14 to 24 September. The following introductions were made at the 1995 show: The 1997 show ran from 11 to 21 September. The following introductions were made at the 1997 show: The 1999 show opened on 16 September, and had nearly 1,200 exhibitors from 44 countries The following introductions were made at

2352-423: The 1999 show: The 2001 show opened to international media on 11 September, with a series of concept and production vehicle debuts kicking off in the early morning. The following introductions were made at the 2001 show: For the first time, the passenger car-only exhibition in Frankfurt broke the barrier of one million visitors. It featured 2,000 exhibitors from 42 countries. The following introductions were made at

2450-429: The 19th and early 20th centuries, the current banking panic is a wholesale panic, not a retail panic. In the earlier episodes, depositors ran to their banks and demanded cash in exchange for their checking accounts. Unable to meet those demands, the banking system became insolvent. The current panic involved financial firms "running" on other financial firms by not renewing sale and repurchase agreements (repo) or increasing

2548-416: The 19th century. Yet, over the past 30-plus years, we permitted the growth of a shadow banking system – opaque and laden with short term debt – that rivaled the size of the traditional banking system. Key components of the market – for example, the multitrillion-dollar repo lending market, off-balance-sheet entities, and the use of over-the-counter derivatives – were hidden from view, without

2646-447: The 2003 show: The exhibition focused strongly on future solutions such as hybrid , hydrogen , flex-fuel and SCR technologies for reducing NOx emissions. There were around 940,000 visitors to the 2005 show. The following introductions were made at the 2005 show: Trade fair In contrast to consumer shows, only some trade shows are open to the public, while others can only be attended by company representatives (members of

2744-563: The 21st century, with the rapid industrialization of Asia , trade shows and exhibitions are now commonplace throughout the Asian continent, with China dominating the exhibitions industry in Asia, accounting for more than 55 per cent of all space sold in the region in 2011. Trade shows play important roles in marketing as well as business networking in market sectors that use them. People will seek to meet people and companies at their own level in

2842-479: The 29th installation of the event gathered a total of 825,000 visitors – an all-time record at that time. The new Volkswagen was presented for the first time, which later came to be known as the Beetle . This was the last IAA before it was again suspended during World War II . After World War II Germany and Berlin were divided. From 1947 to 1949, West Germany's automobile and accessories manufacturers took part in

2940-544: The FCIC Republican minority dissenting report also concluded that U.S. housing policies were not a robust explanation for a wider global housing bubble. The hypothesis that a primary cause of the crisis was U.S. government housing policy requiring banks to make risky loans has been widely disputed, with Paul Krugman referring to it as "imaginary history". One of the other challenges with blaming government regulations for essentially forcing banks to make risky loans

3038-533: The Federal Reserve has been widely discussed, the main point of controversy remains the lowering of the Federal funds rate to 1% for more than a year, which, according to Austrian theorists , injected huge amounts of "easy" credit-based money into the financial system and created an unsustainable economic boom. There is an argument that Greenspan's actions in the years 2002–2004 were actually motivated by

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3136-416: The Federal Reserve. Further, American International Group (AIG) had insured mortgage-backed and other securities but was not required to maintain sufficient reserves to pay its obligations when debtors defaulted on these securities. AIG was contractually required to post additional collateral with many creditors and counter-parties, touching off controversy when over $ 100 billion of U.S. taxpayer money

3234-634: The G20‑;zone, however, is a good indicator for the world GDP, and it was measured to have suffered a direct quarter on quarter decline during the three quarters from Q3‑2008 until Q1‑2009, which more accurately mark when the recession took place at the global level. According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession began in December 2007 and ended in June 2009, and thus extended over eighteen months. The years leading up to

3332-479: The German automotive industry. For the first time, the number of exhibitors fell below 1,000, while the number of visitors dropped to 810,000 – the worst figure since 2001. Meanwhile, New Mobility World grew significantly to 250 participating organizations, 200 conference speakers and 250,000 visitors. Since 2017, NMW's purpose was to not only to be Europe's leading innovation platform for future mobility, but also to develop and establish formats and business models beyond

3430-605: The IAA as one of the "big five" most prestigious auto shows worldwide. In 1897 the first IAA was held at the Hotel Bristol in Berlin , with a total of eight motor vehicles on display. As the automobile became more known and accepted, the IAA became a fixed event in Germany, with at least one held every year, usually in Berlin. From 1905 to 1907, there were two per year, as the production had increased to an industrial level. In

3528-461: The IAA or greatly downsized their presence. The marques that specialise in high performance and luxury vehicles — such as Aston Martin, Bentley, Bugatti, Ferrari, and Rolls-Royce — were often the biggest draw at the IAA show, and they were absent from the several previous exhibitions. BMW had downsized its presence from 11,000 to 3,000 square metres. Since 2017, visitor numbers have almost halved, this, in addition to controversies such as Dieselgate and

3626-753: The Summit on Financial Markets and the World Economy," dated November 15, 2008, leaders of the Group of 20 cited the following causes: During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in

3724-552: The US, from $ 106,591 to $ 68,839 between 2005 and 2011. The US Financial Crisis Inquiry Commission , composed of six Democratic and four Republican appointees, reported its majority findings in January 2011. It concluded that "the crisis was avoidable and was caused by: There were two Republican dissenting FCIC reports. One of them, signed by three Republican appointees, concluded that there were multiple causes. In his separate dissent to

3822-546: The United States, and 21% in Denmark. Household defaults, underwater mortgages (where the loan balance exceeds the house value), foreclosures, and fire sales are now endemic to a number of economies. Household deleveraging by paying off debts or defaulting on them has begun in some countries. It has been most pronounced in the United States, where about two-thirds of the debt reduction reflects defaults." The onset of

3920-513: The academic definition, the recession ended in the United States in June or July 2009. Journalist Robert Kuttner has argued that 'The Great Recession' is a misnomer. According to Kuttner, "recessions are mild dips in the business cycle that are either self-correcting or soon cured by modest fiscal or monetary stimulus. Because of the continuing deflationary trap, it would be more accurate to call this decade's stagnant economy The Lesser Depression or The Great Deflation." The Great Recession met

4018-400: The automobile industry, with a focus on decreased speed limits and conserving energy, with most of Western Europe on the brink of a severe recession . It also occurred at a time when car design was changing substantially, with hatchbacks and front-wheel drive becoming increasingly popular, as well as demand increasing for smaller "supermini" cars. The following introductions were scheduled for

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4116-464: The bailout measures started under the Bush administration and continued during his administration as completed and mostly profitable as of December 2014 . As of January 2018 , bailout funds had been fully recovered by the government, when interest on loans is taken into consideration. A total of $ 626B was invested, loaned, or granted due to various bailout measures, while $ 390B had been returned to

4214-528: The bailouts. In 2008, TARP allocated $ 426.4 billion to various major financial institutions. However, the US collected $ 441.7 billion in return from these loans in 2010, recording a profit of $ 15.3 billion. Nonetheless, there was a political shift from the Democratic party. Examples include the rise of the Tea Party and the loss of Democratic majorities in subsequent elections. President Obama declared

4312-476: The booth rental of conventional auto shows. This trend continued at the 58th IAA Cars 2019, with New Mobility World growing to over 400 participating organizations, doubling the number of attendees to 500,000, and increasing its international reach, with 62% of the 240 speakers and 47% attendees at the English-only conference coming from abroad. International media perceived New Mobility World to have "become

4410-465: The contract, citing the above reasons. Instead, VDA indicated its intention of moving its biannual automotive exhibitions to another city for 2021 onward. The final three candidate cities were Berlin , Hamburg, and Munich . Four other cities had also submitted bids but didn't make the final round: Cologne , Frankfurt, Hanover , and Stuttgart . On 3 March 2020, VDA chose Munich . Munich beat out Berlin and Hamburg based on three criteria. Munich Airport

4508-453: The crisis were characterized by an exorbitant rise in asset prices and associated boom in economic demand. Further, the U.S. shadow banking system (i.e., non-depository financial institutions such as investment banks) had grown to rival the depository system yet was not subject to the same regulatory oversight, making it vulnerable to a bank run . US mortgage-backed securities , which had risks that were hard to assess, were marketed around

4606-668: The crisis) and vulnerabilities (i.e., structural weaknesses in the financial system, regulation and supervision) that amplified the shocks. Examples of triggers included: losses on subprime mortgage securities that began in 2007 and a run on the shadow banking system that began in mid-2007, which adversely affected the functioning of money markets. Examples of vulnerabilities in the private sector included: financial institution dependence on unstable sources of short-term funding such as repurchase agreements or Repos; deficiencies in corporate risk management; excessive use of leverage (borrowing to invest); and inappropriate usage of derivatives as

4704-442: The current value of the property). Several sources have noted the failure of the US government to supervise or even require transparency of the financial instruments known as derivatives . Derivatives such as credit default swaps (CDSs) were unregulated or barely regulated. Michael Lewis noted CDSs enabled speculators to stack bets on the same mortgage securities. This is analogous to allowing many persons to buy insurance on

4802-523: The downturn. In advanced economies, during the five years preceding 2007, the ratio of household debt to income rose by an average of 39 percentage points, to 138 percent. In Denmark, Iceland, Ireland, the Netherlands, and Norway, debt peaked at more than 200 percent of household income. A surge in household debt to historic highs also occurred in emerging economies such as Estonia, Hungary, Latvia, and Lithuania. The concurrent boom in both house prices and

4900-619: The economic crisis took most people by surprise. A 2009 paper identifies twelve economists and commentators who, between 2000 and 2006, predicted a recession based on the collapse of the then-booming housing market in the United States: Dean Baker , Wynne Godley , Fred Harrison , Michael Hudson , Eric Janszen , Med Jones Steve Keen , Jakob Brøchner Madsen , Jens Kjaer Sørensen, Kurt Richebächer , Nouriel Roubini , Peter Schiff , and Robert Shiller . By 2007, real estate bubbles were still under way in many parts of

4998-405: The economic headwinds that slowed the recovery: On the political front, widespread anger at banking bailouts and stimulus measures (begun by President George W. Bush and continued or expanded by President Obama ) with few consequences for banking leadership, were a factor in driving the country politically rightward starting in 2010. The Troubled Asset Relief Program (TARP) was the largest of

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5096-403: The entire ecosystem of electric mobility, autonomous driving, connectivity and urban mobility. In the second week of the IAA, the emissions scandal (Dieselgate) became public. Until the IAA Cars 2015, exhibitor numbers were consistently above 1,000, and the number of visitors was 931,700. The 67th IAA Cars 2017 – the first after the emissions scandal – was overshadowed by a loss of confidence in

5194-551: The evenings. Booths range from simple tables to elaborate constructions. Trade shows often involve a considerable investment in time and money by participating companies. The planning includes arranging meetings with other attendees beforehand and resources to follow up on opportunities that are created at the show. Costs include space rental, booth design and construction of trade show displays, telecommunications, travel, accommodations, and promotional literature and items to give to attendees. In addition, costs are incurred at

5292-710: The export trade fair in Hanover . The automobile industry's hall acted like a magnet on the public, with a great number of visitors coming to the show. In 1951 the Verband der Automobilindustrie (VDA – Association of the German Automotive Industry) moved the IAA to Frankfurt and the federal State of Hesse purchased shares in the Messe Frankfurt . The trade fair was held in April and attracted

5390-471: The fall of Lehman Brothers on September 15, 2008, a major panic broke out on the inter-bank loan market. There was the equivalent of a bank run on the shadow banking system , resulting in many large and well established investment banks and commercial banks in the United States and Europe suffering huge losses and even facing bankruptcy, resulting in massive public financial assistance (government bailouts). The global recession that followed resulted in

5488-405: The financial system, along with a series of triggering events that began with the bursting of the United States housing bubble in 2005–2012. When housing prices fell and homeowners began to abandon their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called

5586-402: The following recovery weaker. Robert Reich claims the amount of debt in the US economy can be traced to economic inequality , assuming that middle-class wages remained stagnant while wealth concentrated at the top, and households "pull equity from their homes and overload on debt to maintain living standards". The IMF reported in April 2012: "Household debt soared in the years leading up to

5684-642: The following year the first IAA Commercial Vehicles took place in Hanover , Germany. It saw 1,284 exhibitors from 29 countries and gathered 287,000 people, 66 per cent being trade visitors. In 2001 the September 11 attacks on the World Trade Center in New York cast a shadow over the IAA Cars in Frankfurt. The exhibition went ahead all the same. As a mark of solidarity with the victims and their dependants, all show elements and loud music as well as

5782-428: The global climate change issue, have prompted the IAA to change the scope of the exhibition and to pick a new venue. The rapidly decreasing number of visitors in the last several exhibitions reflected the waning enthusiasm for the IAA, along with prominent protests against the car industry by environmental activists. The contract between Messe Frankfurt and VDA , the IAA organiser, expired in 2019. VDA chose not to renew

5880-696: The globe. For example, in the U.S., there are currently over 10,000 trade shows held every year, and several online directories have been established to help organizers, attendees, and marketers identify appropriate events. Modern trade shows follow in the tradition of trade fairs established in late medieval Europe such as the Champagne fairs or the Skåne Market , in the era of merchant capitalism . In this era, produce and craft producers visited towns for trading fairs, to sell and showcase products. These markets were held annually or on several specific days

5978-473: The inflow of investment dollars required to fund the U.S. trade deficit was a major cause of the housing bubble and financial crisis: "The trade deficit, less than 1% of GDP in the early 1990s, hit 6% in 2006. That deficit was financed by inflows of foreign savings, in particular from East Asia and the Middle East. Much of that money went into dodgy mortgages to buy overvalued houses, and the financial crisis

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6076-541: The kind of financial vulnerability that made the Great Depression possible – and they should have responded by extending regulations and the financial safety net to cover these new institutions. Influential figures should have proclaimed a simple rule: anything that does what a bank does, anything that has to be rescued in crises the way banks are, should be regulated like a bank." He referred to this lack of controls as "malign neglect". During 2008, three of

6174-568: The largest U.S. investment banks either went bankrupt ( Lehman Brothers ) or were sold at fire sale prices to other banks ( Bear Stearns and Merrill Lynch ). The investment banks were not subject to the more stringent regulations applied to depository banks. These failures exacerbated the instability in the global financial system. The remaining two investment banks, Morgan Stanley and Goldman Sachs , potentially facing failure, opted to become commercial banks, thereby subjecting themselves to more stringent regulation but receiving access to credit via

6272-444: The last IAA to feature both passenger cars and commercial vehicles in one show confirmed that the exhibition site in Frankfurt was now too small for this major event. Almost 2,000 exhibitors squeezed onto an exhibition site measuring 252,000 square metres. More than 1.2 million visitors attended the event. Because of the high demand, it was no longer possible to meet exhibitors' requirements for adequate exhibition stands. In view of this,

6370-537: The main headline is that all sorts of poor countries became kind of rich, making things like TVs and selling us oil. China, India, Abu Dhabi, Saudi Arabia made a lot of money and banked it." Describing the crisis in Europe, Paul Krugman wrote in February 2012 that: "What we're basically looking at, then, is a balance of payments problem, in which capital flooded south after the creation of the euro, leading to overvaluation in southern Europe." Another narrative about

6468-466: The majority and minority opinions of the FCIC, Commissioner Peter J. Wallison of the American Enterprise Institute (AEI) primarily blamed U.S. housing policy, including the actions of Fannie and Freddie , for the crisis. He wrote: "When the bubble began to deflate in mid-2007, the low quality and high risk loans engendered by government policies failed in unprecedented numbers." In its "Declaration of

6566-430: The meeting point for the world's leading companies in automotive technologies and mobility" by now. The IAA itself recorded only 560,000 visitors (including NMW), the number of exhibitors fell to 873, in particular due to a further loss of international exhibitors. It was also accompanied by much larger protests than in the past. According to the organizers, a total of 25,000 participants, 18,000 of them by bicycle, came to

6664-662: The need to take the U.S. economy out of the early 2000s recession caused by the bursting of the dot-com bubble : although by doing so he did not avert the crisis, but only postponed it. Another narrative focuses on high levels of private debt in the US economy. USA household debt as a percentage of annual disposable personal income was 127% at the end of 2007, versus 77% in 1990. Faced with increasing mortgage payments as their adjustable rate mortgage payments increased, households began to default in record numbers, rendering mortgage-backed securities worthless. High private debt levels also impact growth by making recessions deeper and

6762-414: The next years the show was suspended due to the ongoing World War I , and was then reinstated in 1921 with 67 automobile manufacturers displaying 90 vehicles under the motto "comfort". Despite the still perceptible after-effects of the global recession, the 22nd IAA was held in Berlin in 1931, with a total of 295,000 visitors. For the first time the exhibition included front-wheel drive vehicles. In 1939,

6860-544: The obligation and defaulted; U.S. taxpayers paid over $ 100 billion to global financial institutions to honor AIG obligations, generating considerable outrage. A 2008 investigative article in The Washington Post found leading government officials at the time (Federal Reserve Board Chairman Alan Greenspan , Treasury Secretary Robert Rubin , and SEC Chairman Arthur Levitt ) vehemently opposed any regulation of derivatives. In 1998, Brooksley E. Born , head of

6958-552: The official opening ceremony with the Federal Chancellor were cancelled. VDA President Gottschalk explained this decision: "Because we could not permit terrorist forces to take away our freedom of action. And because, as a key international sector, we have a responsibility not to allow things to grind to a halt." In an impressive manner, the general public confirmed that this indeed was the right decision to take: more than 800,000 people visited this "quiet IAA". In spite of

7056-487: The origin has been focused on the respective parts played by public monetary policy (notably in the US) and by the practices of private financial institutions. In the U.S., mortgage funding was unusually decentralised, opaque, and competitive, and it is believed that competition between lenders for revenue and market share contributed to declining underwriting standards and risky lending. While Alan Greenspan's role as Chairman of

7154-530: The planet. Though no one knew they were in it at the time, the Great Recession had a significant economic and political impact on the United States. While the recession technically lasted from December 2007 – June 2009 (the nominal GDP trough), many important economic variables did not regain pre-recession (November or Q4 2007) levels until 2011–2016. For example, real GDP fell $ 650 billion (4.3%) and did not recover its $ 15 trillion pre-recession level until Q3 2011. Household net worth, which reflects

7252-522: The popular claim (narrative #4) that subprime borrowers with shoddy credit caused the crisis by buying homes they couldn't afford. This narrative is supported by new research showing that the biggest growth of mortgage debt during the U.S. housing boom came from those with good credit scores in the middle and top of the credit score distribution—and that these borrowers accounted for a disproportionate share of defaults. The Economist wrote in July 2012 that

7350-526: The power to set future requirements. These rose to 42 percent in 1995 and 50 percent in 2000, and by 2008 a 56 percent minimum was established. However, the Financial Crisis Inquiry Commission (FCIC) Democratic majority report concluded that Fannie & Freddie "were not a primary cause" of the crisis and that CRA was not a factor in the crisis. Further, since housing bubbles appeared in multiple countries in Europe as well,

7448-410: The protections we had constructed to prevent financial meltdowns. We had a 21st-century financial system with 19th-century safeguards. The Gramm–Leach–Bliley Act (1999), which reduced the regulation of banks by allowing commercial and investment banks to merge, has also been blamed for the crisis, by Nobel Prize –winning economist Joseph Stiglitz among others. Peter Wallison and Edward Pinto of

7546-402: The recession have been described as a symptom of another, deeper crisis by a number of economists. For example, Ravi Batra argues that growing inequality of financial capitalism produces speculative bubbles that burst and result in depression and major political changes . Feminist economists Ailsa McKay and Margunn Bjørnholt argue that the financial crisis and the response to it revealed

7644-488: The recovery was that both individuals and businesses paid down debts for several years, as opposed to borrowing and spending or investing as had historically been the case. This shift to a private sector surplus drove a sizable government deficit. However, the federal government held spending at about $ 3.5 trillion from fiscal years 2009–2014 (thereby decreasing it as a percent of GDP), a form of austerity . Then-Fed Chair Ben Bernanke explained during November 2012 several of

7742-461: The repo margin ("haircut"), forcing massive deleveraging, and resulting in the banking system being insolvent. The Financial Crisis Inquiry Commission reported in January 2011: In the early part of the 20th century, we erected a series of protections – the Federal Reserve as a lender of last resort , federal deposit insurance, ample regulations – to provide a bulwark against the panics that had regularly plagued America's banking system in

7840-499: The same house. Speculators that bought CDS protection were betting significant mortgage security defaults would occur, while the sellers (such as AIG ) bet they would not. An unlimited amount could be wagered on the same housing-related securities, provided buyers and sellers of the CDS could be found. When massive defaults occurred on underlying mortgage securities, companies like AIG that were selling CDS were unable to perform their side of

7938-641: The separation, the show was held solely at the Messe Frankfurt. In 2021, the IAA adopted the New Mobility World concept, formats and business model, rebranded to IAA Mobility, and moved to Munich . The IAA is organized by the Verband der Automobilindustrie (VDA – Association of the German Automotive Industry) and is scheduled by the Organisation Internationale des Constructeurs d'Automobiles (OICA), who recognize

8036-489: The show for services such as electrical, booth cleaning, internet services, and drayage (also known as material handling). This local spending on logistics leads cities to promote trade shows as a means of local economic development, as well as providing opportunities for local businesses to grow, and attract new businesses to come. Autumn session: October 15–19 (Phase 1); October 23–27 (Phase 2); October 31- November 4 (Phase 3). Great Recession The Great Recession

8134-518: The stimulus measures such as quantitative easing (pumping money into the system) and holding down central bank wholesale lending interest rate should be withdrawn as soon as economies recover enough to "chart a path to sustainable growth ". The distribution of household incomes in the United States became more unequal during the post-2008 economic recovery . Income inequality in the United States grew from 2005 to 2012 in more than two thirds of metropolitan areas. Median household wealth fell 35% in

8232-611: The stock market meant that household debt relative to assets held broadly stable, which masked households' growing exposure to a sharp fall in asset prices. When house prices declined, ushering in the global financial crisis, many households saw their wealth shrink relative to their debt, and, with less income and more unemployment, found it harder to meet mortgage payments. By the end of 2011, real house prices had fallen from their peak by about 41% in Ireland, 29% in Iceland, 23% in Spain and

8330-490: The system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions. Federal Reserve Chair Ben Bernanke testified in September 2010 before the FCIC regarding the causes of the crisis. He wrote that there were shocks or triggers (i.e., particular events that touched off

8428-498: The top investment banks during an April 2004 meeting with bank leaders. These banks increased their risk-taking shortly thereafter, significantly increasing their purchases and securitization of lower-quality mortgages, thus encouraging additional subprime and Alt-A lending by mortgage companies. This action by its investment bank competitors also resulted in Fannie Mae and Freddie Mac taking on more risk. The financial crisis and

8526-484: The trade, e.g. professionals ) and members of the press , therefore trade shows are classified as either "public" or "trade only". A few shows are hybrids of the two; one example is the Frankfurt Book Fair , which is trade only for its first three days and open to the general public on its final two days. They are held on a continuing basis in virtually all markets and normally attract companies from around

8624-559: The transformation of the automotive industry : In 2011 the 63rd IAA featured the all-new "Hall of Electric Mobility", a first-timer to all Motor Shows worldwide. Additional IAA-premieres included the Electric Mobility Conference as well as the CarIT Conference dealing with the issue of connected driving. This approach was repeated in 2013. In 2015, the IAA introduced New Mobility World, a platform for

8722-520: The value of both stock markets and housing prices, fell $ 11.5 trillion (17.3%) and did not regain its pre-recession level of $ 66.4 trillion until Q3 2012. The number of persons with jobs (total non-farm payrolls) fell 8.6 million (6.2%) and did not regain the pre-recession level of 138.3 million until May 2014. The unemployment rate peaked at 10.0% in October 2009 and did not return to its pre-recession level of 4.7% until May 2016. A key dynamic slowing

8820-453: The word "recession" exist: one sense referring definitively to "a period of reduced economic activity" and ongoing hardship; and the more allegoric interpretation used in economics , which is defined operationally , referring specifically to the contraction phase of a business cycle , with two or more consecutive quarters of GDP contraction (negative GDP growth rate) and typically used to influence abrupt changes in monetary policy. Under

8918-687: The world, especially in the United States , France, the United Kingdom , Spain , the Netherlands, Australia, the United Arab Emirates, New Zealand , Ireland , Poland , South Africa , Greece , Bulgaria , Croatia , Norway , Singapore , South Korea , Sweden , Finland , Argentina , the Baltic states , India , Romania , Ukraine and China . U.S. Federal Reserve Chairman Alan Greenspan said in mid-2005 that "at

9016-454: The world, as they offered higher yields than U.S. government bonds. Many of these securities were backed by subprime mortgages, which collapsed in value when the U.S. housing bubble burst during 2006 and homeowners began to default on their mortgage payments in large numbers starting in 2007. The emergence of subprime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and

9114-515: Was a period of market decline in economies around the world that occurred from late 2007 to mid-2009. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression . The causes of the Great Recession include a combination of vulnerabilities that developed in

9212-725: Was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecast probabilities, which were still well under 50%. The recession was not felt equally around the world; whereas most of the world's developed economies , particularly in North America, South America and Europe, fell into a severe, sustained recession, many more recently developing economies suffered far less impact, particularly China , India and Indonesia , whose economies grew substantially during this period. Similarly, Oceania suffered minimal impact , in part due to its proximity to Asian markets. Two interpretations of

9310-553: Was also imported to the UK from April 1983, where it was sold as the Vauxhall Nova . The following introductions were made at the 1983 show from 12 to 22 September: The following introductions were made at the 1985 show: The following introductions were made at the 1987 show: The following introductions were made at the 1988 show: The following introductions were made at the 1989 show: The following introductions were made at

9408-456: Was paid out to major global financial institutions on behalf of AIG. While this money was legally owed to the banks by AIG (under agreements made via credit default swaps purchased from AIG by the institutions), a number of Congressmen and media members expressed outrage that taxpayer money was used to bail out banks. Economist Gary Gorton wrote in May 2009 Unlike the historical banking panics of

9506-446: Was planned to take place from 7 to 12 September, before the start of Oktoberfest , but was cancelled due to Covid. The IAA Mobility finally took place in September 2021. The following introductions were made at the 1951 show: The following introductions were made at the 1953 show: The following introductions were made at the 1955 show: The following introductions were made at the 1957 show: The following introductions were made at

9604-402: Was the result." In May 2008, NPR explained in their Peabody Award winning program " The Giant Pool of Money " that a vast inflow of savings from developing nations flowed into the mortgage market, driving the U.S. housing bubble. This pool of fixed income savings increased from around $ 35 trillion in 2000 to about $ 70 trillion by 2008. NPR explained this money came from various sources, "[b]ut

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