The Riverside Red Wave were a Minor League Baseball team in Riverside , California . The Red Wave were Class A-Advanced California League affiliate of the San Diego Padres . Plagued by poor attendance, the franchise moved to Adelanto following the 1990 season. The team would become the High Desert Mavericks .
101-574: In the fall of 1987, Bobby Brett and his brothers George, John, and Ken purchased their Salinas franchise for $ 250,000. The Brett ownership group signed a player development contract with the San Diego Padres. With two months until opening day the city approved a stadium lease with the club that included $ 1.5 million to upgrade the Riverside Sports Center. The team was headed to the inland empire where they hastily prepared for
202-628: A climax with the bankruptcy of Lehman Brothers on September 15, 2008, and a subsequent international banking crisis . The prerequisites for the crisis were complex. During the 1990s, the U.S. Congress had passed legislation intended to expand affordable housing through looser financing. In 1999, parts of the Glass–Steagall legislation (passed in 1933) were repealed , permitting institutions to mix low-risk operations, such as commercial banking and insurance , with higher-risk operations such as investment banking and proprietary trading . As
303-662: A country (such as the US) running a current account deficit also have a capital account (investment) surplus of the same amount. Hence large and growing amounts of foreign funds (capital) flowed into the U.S. to finance its imports. All of this created demand for various types of financial assets, raising the prices of those assets while lowering interest rates. Foreign investors had these funds to lend either because they had very high personal savings rates (as high as 40% in China) or because of high oil prices. Ben Bernanke referred to this as
404-857: A fire station and laid off a quarter of the town's staff. Residents though turned down a nearly 8% utility users tax in November 2013. Upon the legalization of the sale and distribution of cannabis in 2016, marijuana cultivation was considered a possible new source of revenue for the city. Companies must be licensed by the local agency and the state to grow, test, or sell cannabis and the city may authorize none or only some of these activities. Local governments may not prohibit adults, who are in compliance with state laws, from growing, using, or transporting marijuana for personal use. The city decided to allow multiple types of marijuana businesses, including cultivation, manufacturing and retail sales. By 2019, two cannabis dispensaries were serving recreational users as
505-450: A further collapse, encourage lending, restore faith in the integral commercial paper markets, avoid the risk of a deflationary spiral , and provide banks with enough funds to allow customers to make withdrawals. In effect, the central banks went from being the " lender of last resort " to the "lender of only resort" for a significant portion of the economy. In some cases the Fed was considered
606-495: A global economic shock, resulting in several bank failures . Economies worldwide slowed during this period since credit tightened and international trade declined. Housing markets suffered and unemployment soared, resulting in evictions and foreclosures . Several businesses failed. From its peak in the second quarter of 2007 at $ 61.4 trillion, household wealth in the United States fell $ 11 trillion, to $ 50.4 trillion by
707-483: A housing bubble to replace the Nasdaq bubble". Moreover, empirical studies using data from advanced countries show that excessive credit growth contributed greatly to the severity of the crisis. Additional downward pressure on interest rates was created by rising U.S. current account deficit, which peaked along with the housing bubble in 2006. Federal Reserve chairman Ben Bernanke explained how trade deficits required
808-488: A population of 31,765. The population density was 567.0 inhabitants per square mile (218.9/km ). The racial makeup of Adelanto was 13,909 (43.8%) White (17.0% Non-Hispanic White), 6,511 (20.5%) African American , 411 (1.3%) Native American , 617 (1.9%) Asian , 194 (0.6%) Pacific Islander , 8,337 (26.2%) from other races , and 1,786 (5.6%) from two or more races. Hispanic or Latino of any race were 18,513 persons (58.3%). The Census reported that 30,012 people (94.5% of
909-821: A range of measures intended to preserve existing jobs and create new ones. Combined, the initiatives, coupled with actions taken in other countries, ended the worst of the Great Recession by mid-2009. Assessments of the crisis's impact in the U.S. vary, but suggest that some 8.7 million jobs were lost, causing unemployment to rise from 5 percent in 2007 to a high of 10 percent in October 2009. The percentage of citizens living in poverty rose from 12.5 percent in 2007 to 15.1 percent in 2010. The Dow Jones Industrial Average fell by 53 percent between October 2007 and March 2009, and some estimates suggest that one in four households lost 75 percent or more of their net worth . In 2010,
1010-545: A really bad economy. In other words, the borrowers did not cause the loans to go bad-it was the economy. Between 1998 and 2006, the price of the typical American house increased by 124%. During the 1980s and 1990s, the national median home price ranged from 2.9 to 3.1 times median household income. By contrast, this ratio increased to 4.0 in 2004, and 4.6 in 2006. This housing bubble resulted in many homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by
1111-561: A resulting housing bubble , excessive risk-taking by global financial institutions , and lack of regulatory oversight, which culminated in a " perfect storm " that triggered the Great Recession , which lasted from late 2007 to mid-2009. The financial crisis began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate , as well as a vast web of derivatives linked to those MBS, collapsed in value . Financial institutions worldwide suffered severe damage, reaching
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#17327909115501212-404: A significant increase in subprime lending . Subprime had not become less risky; Wall Street just accepted this higher risk. Due to competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages to less creditworthy borrowers. In the view of some analysts,
1313-489: A single pool from which specific securities draw in a specific sequence of priority. Those securities first in line received investment-grade ratings from rating agencies. Securities with lower priority had lower credit ratings but theoretically a higher rate of return on the amount invested. By September 2008, average U.S. housing prices had declined by over 20% from their mid-2006 peak. As prices declined, borrowers with adjustable-rate mortgages could not refinance to avoid
1414-662: A virtual school, and three middle schools. High school-aged students in all of those elementary and middle school districts attend schools in the Victor Valley Union High School District (VVUSD), including Adelanto High School , the first high school in Adelanto city limits, or in the neighboring Snowline Joint Unified School District centered in Phelan . Charter schools include: Until 2001, Adelanto had its own police department, which
1515-706: Is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability. In the table, the names of emerging and developing economies are shown in boldface type, while the names of developed economies are in Roman (regular) type. The twenty largest economies contributing to global GDP (PPP) growth (2007–2017) The expansion of central bank lending in response to
1616-466: Is provided by American Medical Response. 2007%E2%80%932008 financial crisis The 2007–2008 financial crisis , or the global financial crisis ( GFC ), was the most severe worldwide economic crisis since the 1929 Wall Street crash that began the Great Depression . Causes of the crisis included predatory lending in the form of subprime mortgages to low-income homebuyers and
1717-681: Is the home of UC Riverside baseball. Adelanto Adelanto ( Spanish for "Advance") is a city in San Bernardino County , California , United States. It is approximately 9 miles (14 km) northwest of Victorville in the Victor Valley area of the Mojave Desert , in the northern region of the Inland Empire . The population was 38,046 at the 2020 census . The area was originally inhabited by
1818-659: The Class A-Advanced California League . For the 2017 season, the Pecos League established the High Desert Yardbirds to fill the void at Adelanto Stadium . The team closed their last season at the stadium in 2019. In the state legislature , Adelanto is in the 21st Senate District , represented by Republican Scott Wilk , and in the 33rd Assembly District , represented by Republican Devon Mathis . In
1919-582: The Dodd–Frank Wall Street Reform and Consumer Protection Act was passed, overhauling financial regulations. It was opposed by many Republicans , and it was weakened by the Economic Growth, Regulatory Relief, and Consumer Protection Act in 2018. The Basel III capital and liquidity standards were also adopted by countries around the world. The recession was a significant factor in the 2010s European debt crisis . The crisis sparked
2020-654: The Federal Reserve ("Fed") lowered the federal funds rate from 2000 to 2003, institutions increasingly targeted low-income homebuyers, largely belonging to racial minorities , with high-risk loans; this development went unattended by regulators. As interest rates rose from 2004 to 2006, the cost of mortgages rose and the demand for housing fell, causing property values to decline. In early 2007, as more U.S. mortgage holders began defaulting on their repayments, subprime lenders went bankrupt, culminating in April with
2121-474: The Federal Reserve lowered the federal funds rate target from 6.5% to 1.0%. This was done to soften the effects of the collapse of the dot-com bubble and the September 11 attacks , as well as to combat a perceived risk of deflation . As early as 2002, it was apparent that credit was fueling housing instead of business investment as some economists went so far as to advocate that the Fed "needs to create
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#17327909115502222-550: The Great Depression . This matters for credit decisions. A homeowner with equity in her home is very unlikely to default on a car loan or credit card debt. They will draw on this equity rather than lose their car and/or have a default placed on their credit record. On the other hand, a homeowner who has no equity is a serious default risk. In the case of businesses, their creditworthiness depends on their future profits. Profit prospects look much worse in November 2008 than they did in November 2007 ... While many banks are obviously at
2323-689: The Great Recession , which, at the time, was the most severe global recession since the Great Depression. It was also followed by the European debt crisis, which began with a deficit in Greece in late 2009, and the 2008–2011 Icelandic financial crisis , which involved the bank failure of all three of the major banks in Iceland and, relative to the size of its economy, was the largest economic collapse suffered by any country in history. It
2424-673: The Serrano Native American tribe. Adelanto was founded in 1915 by E. H. Richardson, the inventor of what became the Hotpoint electric iron . He sold his patent and purchased land for $ 75,000. He had planned to develop one of the first planned communities in Southern California. The name Adelanto means 'progress' or 'advance' in Spanish, and was first given to the post office that was established on
2525-561: The United States House Committee on Financial Services held a hearing, at the urging of the administration, to assess safety and soundness issues and to review a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO) that had uncovered accounting discrepancies within the two entities. The hearings never resulted in new legislation or formal investigation of Fannie Mae and Freddie Mac, as many of
2626-783: The United States House of Representatives , Adelanto is in California's 23rd congressional district , represented by Republican Jay Obernolte . The majority of Adelanto is in the Adelanto Elementary School District (AESD) for preschool, elementary and middle school levels, while a very small portion is in the Oro Grande Elementary School District . The Adelanto Elementary District has nine elementary schools, three combined K-8 schools (one of them
2727-501: The mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies . In effect, Wall Street connected this pool of money to the mortgage market in the US, with enormous fees accruing to those throughout the mortgage supply chain , from the mortgage broker selling the loans to small banks that funded the brokers and the large investment banks behind them. By approximately 2003,
2828-536: The poverty line , including 30.0% of those under age 18 and 12.8% of those age 65 or over. Historically Adelanto was a fruit-growing town. Prior to 1992, much of the economy was related to the George Air Force Base . After its closure the city began having economic difficulties. The openings of several area prisons began in 1991, and the city government approved the construction of two private prisons. The prisons were not required to hire people within
2929-403: The "buyer of last resort". During the fourth quarter of 2008, these central banks purchased US$ 2.5 (~$ 3.47 trillion in 2023) trillion of government debt and troubled private assets from banks. This was the largest liquidity injection into the credit market, and the largest monetary policy action in world history. Following a model initiated by the 2008 United Kingdom bank rescue package ,
3030-764: The 2008 financial crisis, consumer regulators in America have more closely supervised sellers of credit cards and home mortgages in order to deter anticompetitive practices that led to the crisis. At least two major reports on the causes of the crisis were produced by the U.S. Congress: the Financial Crisis Inquiry Commission report, released January 2011, and a report by the United States Senate Homeland Security Permanent Subcommittee on Investigations entitled Wall Street and
3131-489: The Adelanto city limits. The city, as of 2016, collects $ 160,000 annually in total from the prisons within the city limits. That year Jimi Devine of the San Francisco Chronicle wrote that the prisons "had mixed effects on the community for 25 years." Matt Tinoco of Vice wrote that "the prisons have failed to stimulate lasting growth in Adelanto" and that "all ultimately ended up contributing little to
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3232-529: The CRA. They contend that there were two, connected causes to the crisis: the relaxation of underwriting standards in 1995 and the ultra-low interest rates initiated by the Federal Reserve after the terrorist attack on September 11, 2001. Both causes had to be in place before the crisis could take place. Critics also point out that publicly announced CRA loan commitments were massive, totaling $ 4.5 trillion in
3333-491: The Financial Crisis: Anatomy of a Financial Collapse , released April 2011. In total, 47 bankers served jail time as a result of the crisis, over half of which were from Iceland , where the crisis was the most severe and led to the collapse of all three major Icelandic banks. In April 2012, Geir Haarde of Iceland became the only politician to be convicted as a result of the crisis. Only one banker in
3434-486: The LMI borrowers targeted by the CRA, especially in the years 2005–2006 leading up to the crisis, nor did it find any evidence that lending under the CRA rules increased delinquency rates or that the CRA indirectly influenced independent mortgage lenders to ramp up sub-prime lending. To other analysts the delay between CRA rule changes in 1995 and the explosion of subprime lending is not surprising, and does not exonerate
3535-456: The Pilots over $ 80,000 over the course of their existence. Multiple attempts to obtain a license to sell beer were met with resistance. The club eventually conceded these efforts and accepted that attendance figures would fail to meet expectations. The team's inaugural season proved to be their most successful. The Red Wave went an identical 64-78 in consecutive seasons, finishing in place last of
3636-600: The SEC's December 2011 securities fraud case against six former executives of Fannie and Freddie, Peter Wallison and Edward Pinto estimated that, in 2008, Fannie and Freddie held 13 million substandard loans totaling over $ 2 trillion. In the early and mid-2000s, the Bush administration called numerous times for investigations into the safety and soundness of the GSEs and their swelling portfolio of subprime mortgages. On September 10, 2003,
3737-660: The San Bernardino County's library system, the Adelanto Library began in the office of a fruit company. El Mirage Dry Lake , west of Adelanto, has been used for filming movies and television commercials, most notably the opening sequence of the later episodes of the TV series Sky King . From 1991 to 2016, the city was home to the High Desert Mavericks , a Minor League Baseball team of
3838-549: The U.S. to borrow money from abroad, in the process bidding up bond prices and lowering interest rates. Bernanke explained that between 1996 and 2004, the U.S. current account deficit increased by $ 650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the country to borrow large sums from abroad, much of it from countries running trade surpluses. These were mainly the emerging economies in Asia and oil-exporting nations. The balance of payments identity requires that
3939-409: The United States did not have wealth declines at all during the crisis because they generally did not own financial investments whose value can fluctuate. The Federal Reserve surveyed 4,000 households between 2007 and 2009, and found that the total wealth of 63% of all Americans declined in that period and 77% of the richest families had a decrease in total wealth, while only 50% of those on the bottom of
4040-487: The United States served jail time as a result of the crisis, Kareem Serageldin , a banker at Credit Suisse who was sentenced to 30 months in jail and returned $ 24.6 million in compensation for manipulating bond prices to hide $ 1 billion of losses. No individuals in the United Kingdom were convicted as a result of the crisis. Goldman Sachs paid $ 550 million to settle fraud charges after allegedly anticipating
4141-726: The Victorville Courthouse), serving unincorporated areas of the Victor Valley, was consolidated into the Adelanto Station in 2009. Until 1999, fire protection was provided by the city's own fire department. The city now contracts with the San Bernardino County Fire Department. There is one station within the city limits providing paramedic service as well as fire and rescue services. Ambulance and patient transportation
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4242-524: The age of 18 living with them, 56.6% were married couples living together, 17.5% had a female householder with no husband present, and 18.5% were non-families. 14.3% of all households were made up of individuals, and 3.9% had someone living alone who was 65 years of age or older. The average household size was 3.5 and the average family size was 3.9. The population had 38.0% under the age of 18, 9.1% from 18 to 24, 35.2% from 25 to 44, 12.6% from 45 to 64, and 5.1% who were 65 years of age or older. The median age
4343-484: The airfield was named George Air Force Base in honor of the late Brigadier General Harold H. George . Adelanto continued as a "community services district" until 1970 when the city incorporated, and Adelanto became San Bernardino County's then smallest city. The city became a charter city in November 1992. Adelanto had a card room called the Hi Desert Casino which operated from 1975 to 1997. The casino
4444-559: The bailout to Fannie Mae and Freddie Mac exceeds $ 300 billion (c. $ 401 billion in 2023 ) (calculated by adding the fair value deficits of the entities to the direct bailout funds at the time). Economist Paul Krugman argued in January 2010 that the simultaneous growth of the residential and commercial real estate pricing bubbles and the global nature of the crisis undermines the case made by those who argue that Fannie Mae, Freddie Mac, CRA, or predatory lending were primary causes of
4545-535: The bailouts, such as in the case of the AIG bonus payments controversy , leading to the development of a variety of "decision making frameworks", to help balance competing policy interests during times of financial crisis. Alistair Darling , the U.K.'s Chancellor of the Exchequer at the time of the crisis, stated in 2018 that Britain came within hours of "a breakdown of law and order" the day that Royal Bank of Scotland
4646-557: The bankruptcy of New Century Financial . As demand and prices continued to fall, the contagion spread to worldwide credit markets by August, and central banks began injecting liquidity . By July 2008, Fannie Mae and Freddie Mac , companies which together owned or guaranteed half of the U.S. housing market, were on the verge of collapse; the Housing and Economic Recovery Act enabled the government to take over and cover their combined $ 1.6 trillion debt on September 7. In response to
4747-726: The brink, consumers and businesses would be facing a much harder time getting credit right now even if the financial system were rock solid. The problem with the economy is the loss of close to $ 6 trillion in housing wealth and an even larger amount of stock wealth. ... the pace of economic contraction is slowing. Conditions in financial markets have generally improved in recent months. Household spending has shown further signs of stabilizing but remains constrained by ongoing job losses, lower housing wealth, and tight credit. Businesses are cutting back on fixed investment and staffing but appear to be making progress in bringing inventory stocks into better alignment with sales. Although economic activity
4848-696: The bubble burst, Australian economist John Quiggin wrote, "And, unlike the Great Depression, this crisis was entirely the product of financial markets. There was nothing like the postwar turmoil of the 1920s, the struggles over gold convertibility and reparations, or the Smoot-Hawley tariff , all of which have shared the blame for the Great Depression." Instead, Quiggin lays the blame for the 2008 near-meltdown on financial markets, on political decisions to lightly regulate them, and on rating agencies which had self-interested incentives to give good ratings. Lower interest rates encouraged borrowing. From 2000 to 2003,
4949-566: The city council considered proposed changes to the city's cannabis laws to generate additional revenue to help close the city budget gap. The city is the only Victor Valley municipality to allow storefront cannabis dispensaries. A 14-acre (5.7 ha) indoor cultivation facility was opened in 2019 by the California arm of Tikun Olam . Federal prisons of the Federal Bureau of Prisons near Adelanto: Established in 1921 as part of
5050-735: The city has a total area of 56.0 square miles (145 km ). 56.0 square miles (145 km ) of it is land and 0.02 square miles (0.052 km ) of it (0.03%) is water. The average elevation of the city is 3,400 ft (1,036 m). According to the Köppen Climate Classification system, Adelanto has a Tropical and Subtropical Steppe Climate, abbreviated "BSk" on climate maps. According to 2022, American Community Survey ,1.0% are of English ancestry, 0.4% German - 1.7% Irish, 1.3% Italian, 1.3%Norwegian, 0.1%Polish, 0.1% Scottish and 0.5% Subsaharan African - 0.5%. The 2010 United States Census reported that Adelanto had
5151-421: The city to negotiate terms to provide additional benefits to the city. The city had little latitude to deny the private project as the land was appropriately zoned for use as a prison. The city has only a few retail stores and restaurants. A bed tax contributes about $ 200,000 annually from the detention facilities. The small city has struggled as tax revenue fell far short of the city budget. In 2013, they closed
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#17327909115505252-483: The city's coffers." Tinoco further stated that Adelanto had an "image as one big jail." The privately owned Adelanto Detention Center , run by the GEO Group to house immigrant detainees , was built in Adelanto in 1991 as a state prison. In 2014, when a private developer proposed another prison, the city council approved a development agreement with the private developer that under California subdivision law allows
5353-483: The collapse of real estate values after the 2007–2008 financial crisis . While most of California has seen property values rise to historic highs, much of the Victor Valley region has yet to recover to the 2006 peak. However, in the years since the COVID-19 pandemic there has been a resurgence in suburban and exurban housing demand. Formerly affordable areas in the Inland Empire have become increasingly expensive, and
5454-501: The committee members refused to accept the report and instead rebuked OFHEO for their attempt at regulation. Some, such as Wallison, believe this was an early warning to the systemic risk that the growing market in subprime mortgages posed to the U.S. financial system that went unheeded. A 2000 United States Department of the Treasury study of lending trends for 305 cities from 1993 to 1998 showed that $ 467 billion of mortgage lending
5555-403: The crisis and selling toxic investments to its clients. With fewer resources to risk in creative destruction, the number of patent applications was flat, compared to exponential increases in patent application in prior years. Typical American families did not fare well, nor did the "wealthy-but-not-wealthiest" families just beneath the pyramid's top. However, half of the poorest families in
5656-446: The crisis in commercial real estate and related lending took place after the crisis in residential real estate. Business journalist Kimberly Amadeo reported: "The first signs of decline in residential real estate occurred in 2006. Three years later, commercial real estate started feeling the effects." Denice A. Gierach, a real estate attorney and CPA, wrote: ... most of the commercial real estate loans were good loans destroyed by
5757-437: The crisis was not only confined to the Federal Reserve 's provision of aid to individual financial institutions. The Federal Reserve has also conducted a number of innovative lending programs with the goal of improving liquidity and strengthening different financial institutions and markets, such as Freddie Mac and Fannie Mae . In this case, the major problem among the market is the lack of free cash reserves and flows to secure
5858-526: The crisis. As part of national fiscal policy response to the Great Recession , governments and central banks, including the Federal Reserve , the European Central Bank and the Bank of England , provided then-unprecedented trillions of dollars in bailouts and stimulus , including expansive fiscal policy and monetary policy to offset the decline in consumption and lending capacity, avoid
5959-509: The crisis. In other words, bubbles in both markets developed even though only the residential market was affected by these potential causes. Countering Krugman, Wallison wrote: "It is not true that every bubble—even a large bubble—has the potential to cause a financial crisis when it deflates." Wallison notes that other developed countries had "large bubbles during the 1997–2007 period" but "the losses associated with mortgage delinquencies and defaults when these bubbles deflated were far lower than
6060-730: The division round of the post season the Red Wave beat the Palm Springs Angels in five games to advance to the league championship. Riverside swept the Stockton Ports to win the California League Riverside may have won a league title on the field, but it finished last in attendance. The team was met with resistance in their efforts to sell beer at the games. At the time beer sales accounted for roughly fifteen percent of team's revenue. This would cost
6161-414: The end of the first quarter of 2009, resulting in a decline in consumption, then a decline in business investment. In the fourth quarter of 2008, the quarter-over-quarter decline in real GDP in the U.S. was 8.4%. The U.S. unemployment rate peaked at 11.0% in October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since
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#17327909115506262-608: The end product." Essentially, investment banks and hedge funds used financial innovation to enable large wagers to be made, far beyond the actual value of the underlying mortgage loans, using derivatives called credit default swaps, collateralized debt obligations and synthetic CDOs . By March 2011, the FDIC had paid out $ 9 billion (c. $ 12 billion in 2023 ) to cover losses on bad loans at 165 failed financial institutions. The Congressional Budget Office estimated, in June 2011, that
6363-473: The federal funds rate to drop below where it was supposed to be. However, in October 2008, the Federal Reserve was granted the power to provide banks with interest payments on their surplus reserves. This created a motivation for banks to retain their reserves instead of disbursing them, so reducing the need for the Federal Reserve to hedge its increased lending by decreases in alternative assets. Money market funds also went through runs when people lost faith in
6464-426: The financial system and got banks to start lending again, both to each other and to people. Many homeowners who were trying to keep their homes from going into default got housing credits. A package of policies was passed that let borrowers refinance their loans even though the value of their homes was less than what they still owed on their mortgages . While the causes of the bubble and subsequent crash are disputed,
6565-457: The government began collecting the data in 1964. The economic crisis started in the U.S. but spread to the rest of the world. U.S. consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 and the rest of the world depended on the U.S. consumer as a source of demand. Toxic securities were owned by corporate and institutional investors globally. Derivatives such as credit default swaps also increased
6666-609: The government seized Washington Mutual (the largest savings and loan firm ). On October 3, Congress passed the $ 800 billion Emergency Economic Stabilization Act , which authorized the Treasury Department to purchase troubled assets and bank stocks. The Fed began a program of quantitative easing by buying treasury bonds and other assets, such as MBS, and the February 2009 American Recovery and Reinvestment Act , signed by newly elected President Barack Obama , included
6767-506: The governments of European nations and the United States guaranteed the debt issued by their banks and raised the capital of their national banking systems, ultimately purchasing $ 1.5 trillion newly issued preferred stock in major banks. The Federal Reserve created then-significant amounts of new currency as a method to combat the liquidity trap . Bailouts came in the form of trillions of dollars of loans, asset purchases, guarantees, and direct spending. Significant controversy accompanied
6868-513: The growing crisis, governments around the world deployed massive bail-outs of financial institutions and other monetary and fiscal policies to prevent a collapse of the global financial system . After the bankruptcy of Lehman Brothers , the fourth largest U.S. investment bank, on September 15, the next day the Fed bailed out the American International Group (the largest U.S. insurance company), and on September 25
6969-421: The higher payments associated with rising interest rates and began to default. During 2007, lenders began foreclosure proceedings on nearly 1.3 million properties, a 79% increase over 2006. This increased to 2.3 million in 2008, an 81% increase vs. 2007. By August 2008, approximately 9% of all U.S. mortgages outstanding were either delinquent or in foreclosure. By September 2009, this had risen to 14.4%. After
7070-578: The linkage between large financial institutions. The de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the solvency crisis and caused a decrease in international trade. Reductions in the growth rates of developing countries were due to falls in trade, commodity prices, investment and remittances sent from migrant workers (example: Armenia ). States with fragile political systems feared that investors from Western states would withdraw their money because of
7171-505: The loans. The Federal Reserve took a number of steps to deal with worries about liquidity in the financial markets. One of these steps was a credit line for major traders, who act as the Fed's partners in open market activities. Also, loan programs were set up to make the money market mutual funds and commercial paper market more flexible. Also, the Term Asset-Backed Securities Loan Facility (TALF)
7272-428: The losses suffered in the United States when the 1997–2007 [bubble] deflated." According to Wallison, the reason the U.S. residential housing bubble (as opposed to other types of bubbles) led to financial crisis was that it was supported by a huge number of substandard loans—generally with low or no downpayments. Krugman's contention (that the growth of a commercial real estate bubble indicates that U.S. housing policy
7373-650: The majority report of the Financial Crisis Inquiry Commission, conservative American Enterprise Institute fellow Peter J. Wallison stated his belief that the roots of the financial crisis can be traced directly and primarily to affordable housing policies initiated by the United States Department of Housing and Urban Development (HUD) in the 1990s and to massive risky loan purchases by government-sponsored entities Fannie Mae and Freddie Mac. Based upon information in
7474-599: The market. To keep it from getting worse, the Fed said it would give money to mutual fund companies. Also, Department of Treasury said that it would briefly cover the assets of the fund. Both of these things helped get the fund market back to normal, which helped the commercial paper market, which most businesses use to run. The FDIC also did a number of things, like raise the insurance cap from $ 100,000 to $ 250,000, to boost customer trust. They engaged in Quantitative Easing , which added more than $ 4 trillion to
7575-643: The population) lived in households, 30 (0.1%) lived in non-institutionalized group quarters, and 1,723 (5.4%) were institutionalized. There were 7,809 households, out of which 4,959 (63.5%) had children under the age of 18 living in them, 4,000 (51.2%) were opposite-sex married couples living together, 1,857 (23.8%) had a female householder with no husband present, 722 (9.2%) had a male householder with no wife present. There were 769 (9.8%) unmarried opposite-sex partnerships , and 58 (0.7%) same-sex married couples or partnerships . 910 households (11.7%) were made up of individuals, and 209 (2.7%) had someone living alone who
7676-412: The population) lived in owner-occupied housing units and 13,187 people (41.5%) lived in rental housing units. According to the 2010 United States Census, Adelanto had a median household income of $ 41,113, with 32.0% of the population living below the federal poverty line. As of the 2000 census , there were 18,130 people, 4,714 households, and 3,841 families residing in the city. The population density
7777-588: The precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis , which occurred due to a high default rate and resulting foreclosures of mortgage loans , particularly adjustable-rate mortgages . Some or all of the following factors contributed to the crisis: The relaxing of credit lending standards by investment banks and commercial banks allowed for
7878-501: The price appreciation. In a Peabody Award -winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $ 70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as
7979-451: The promotion of thousands of small mortgage brokers, and by their close relationship to subprime loan aggregators such as Countrywide . Depending on how "subprime" mortgages are defined, they remained below 10% of all mortgage originations until 2004, when they rose to nearly 20% and remained there through the 2005–2006 peak of the United States housing bubble . The majority report of the Financial Crisis Inquiry Commission , written by
8080-400: The pyramid suffered a decrease. The following is a timeline of the major events of the financial crisis, including government responses, and the subsequent economic recovery. There is a really good reason for tighter credit. Tens of millions of homeowners who had substantial equity in their homes two years ago have little or nothing today. Businesses are facing the worst downturn since
8181-568: The region has experienced a major boom in logistics and industrial development. As a result, residents and businesses seeking affordable properties have been increasingly looking further north along Interstate 15 and into Victorville and Adelanto. Adelanto is in the Victor Valley of the south-central Mojave Desert , north of the Cajon Pass and San Bernardino Valley . According to the United States Census Bureau ,
8282-416: The relatively conservative government-sponsored enterprises (GSEs) policed mortgage originators and maintained relatively high underwriting standards prior to 2003. However, as market power shifted from securitizers to originators, and as intense competition from private securitizers undermined GSE power, mortgage standards declined and risky loans proliferated. The riskiest loans were originated in 2004–2007,
8383-464: The season. Construction quickly ensued to bring the stadium capacity from 1,200 to 3,500. Clubhouses, offices, and concession facilities were added to the complex. The Riverside Press-Enterprise newspaper ran a name the team contest. With over three thousand entries a new team name was selected, the Red Wave. Despite a slow start the team finished the year 85-57 to claim the Southern division title. In
8484-481: The site in 1917. Acres of deciduous fruit trees once grew in the city, which became known in the state for its fresh fruit and cider. The orchards thrived until the Great Depression , when they were replaced by poultry ranches. As the wartime emergency developed early in 1941, the Victorville Army Air Field was established with land within the Adelanto sphere of influence. In September 1950,
8585-610: The six Democratic appointees, the minority report, written by three of the four Republican appointees, studies by Federal Reserve economists, and the work of several independent scholars generally contend that government affordable housing policy was not the primary cause of the financial crisis. Although they concede that governmental policies had some role in causing the crisis, they contend that GSE loans performed better than loans securitized by private investment banks, and performed better than some loans originated by institutions that held loans in their own portfolios. In his dissent to
8686-542: The southern division. Following the conclusion of the 1990 season the club confirmed what had been long speculated, they would be relocating to a brand new ballpark in Adelanto . Upon moving the team adopted a unique moniker to represent the region, the High Desert Mavericks . The Riverside Sports Center served as the Red Wave's primary ballpark. Now known as the Riverside Sports Complex , the facility
8787-464: The supply of mortgages originated at traditional lending standards had been exhausted, and continued strong demand began to drive down lending standards. The collateralized debt obligation in particular enabled financial institutions to obtain investor funds to finance subprime and other lending, extending or increasing the housing bubble and generating large fees. This essentially places cash payments from multiple mortgages or other debt obligations into
8888-622: The years between 1994 and 2007. They also argue that the Federal Reserve's classification of CRA loans as "prime" is based on the faulty and self-serving assumption that high-interest-rate loans (3 percentage points over average) equal "subprime" loans. Others have pointed out that there were not enough of these loans made to cause a crisis of this magnitude. In an article in Portfolio magazine, Michael Lewis spoke with one trader who noted that "There weren't enough Americans with [bad] credit taking out [bad loans] to satisfy investors' appetite for
8989-464: The years of the most intense competition between securitizers and the lowest market share for the GSEs. The GSEs eventually relaxed their standards to try to catch up with the private banks. A contrarian view is that Fannie Mae and Freddie Mac led the way to relaxed underwriting standards, starting in 1995, by advocating the use of easy-to-qualify automated underwriting and appraisal systems, by designing no-down-payment products issued by lenders, by
9090-401: Was 25.3 years. For every 100 females, there were 105.6 males. For every 100 females age 18 and over, there were 106.6 males. There were 9,086 housing units at an average density of 162.2 per square mile (62.6/km ), of which 4,513 (57.8%) were owner-occupied, and 3,296 (42.2%) were occupied by renters. The homeowner vacancy rate was 6.6%; the rental vacancy rate was 12.3%. 16,825 people (53.0% of
9191-410: Was 27 years. For every 100 females, there were 115.0 males. For every 100 females age 18 and over, there were 123.0 males. The median income for a household in the city was $ 31,594, and the median income for a family was $ 35,254. Males had a median income of $ 33,971 versus $ 25,807 for females. The per capita income for the city was $ 10,053. About 21.4% of families and 24.5% of the population were below
9292-471: Was 338.7 inhabitants per square mile (130.8/km ). There were 5,547 housing units at an average density of 103.6 per square mile (40.0/km ). The racial makeup of the city was 50.5% White , 13.1% African American , 1.6% Native American , 1.6% Asian , 0.2% Pacific Islander , 26.6% from other races , and 6.5% from two or more races. Hispanic or Latino of any race were 45.8% of the population. There were 4,714 households, out of which 56.7% had children under
9393-418: Was 65 years of age or older. The average household size was 3.84. There were 6,579 families (84.2% of all households); the average family size was 4.11. The population was spread out, with 11,807 people (37.2%) under the age of 18, 3,916 people (12.3%) aged 18 to 24, 9,287 people (29.2%) aged 25 to 44, 5,358 people (16.9%) aged 45 to 64, and 1,397 people (4.4%) who were 65 years of age or older. The median age
9494-524: Was among the five worst financial crises the world had experienced and led to a loss of more than $ 2 trillion from the global economy. U.S. home mortgage debt relative to GDP increased from an average of 46% during the 1990s to 73% during 2008, reaching $ 10.5 (~$ 14.6 trillion in 2023) trillion. The increase in cash out refinancings , as home values rose, fueled an increase in consumption that could no longer be sustained when home prices declined. Many financial institutions owned investments whose value
9595-450: Was bailed-out. Instead of financing more domestic loans, some banks instead spent some of the stimulus money in more profitable areas such as investing in emerging markets and foreign currencies. In July 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in the United States to "promote the financial stability of the United States". The Basel III capital and liquidity standards were adopted worldwide. Since
9696-542: Was based on home mortgages such as mortgage-backed securities , or credit derivatives used to insure them against failure, which declined in value significantly. The International Monetary Fund estimated that large U.S. and European banks lost more than $ 1 trillion on toxic assets and from bad loans from January 2007 to September 2009. Lack of investor confidence in bank solvency and declines in credit availability led to plummeting stock and commodity prices in late 2008 and early 2009. The crisis rapidly spread into
9797-547: Was disbanded due to corruption, but now contracts with the San Bernardino County Sheriff's Department for police services. The Adelanto Substation is on US Highway 395 and Bartlett Avenue. The station provides full service law enforcement for the City of Adelanto, and unincorporated areas of the Victor Valley such as Phelan, Lucerne Valley , and Spring Valley Lake . The former regional station (next to
9898-404: Was located across from city hall at the corner of Air Expressway and U.S. Highway 395. It boasted a fine restaurant and bar and people came from all over San Bernardino County to play cards. During the 2000s United States housing bubble , many large suburban subdivisions were built in the southern portion of the city, along Highway 18. Like neighboring Victorville, Adelanto suffered severely from
9999-550: Was made by Community Reinvestment Act (CRA)-covered lenders into low and mid-level income (LMI) borrowers and neighborhoods, representing 10% of all U.S. mortgage lending during the period. The majority of these were prime loans. Sub-prime loans made by CRA-covered institutions constituted a 3% market share of LMI loans in 1998, but in the run-up to the crisis, fully 25% of all subprime lending occurred at CRA-covered institutions and another 25% of subprime loans had some connection with CRA. However, most sub-prime loans were not made to
10100-517: Was not the cause of the crisis) is challenged by additional analysis. After researching the default of commercial loans during the financial crisis, Xudong An and Anthony B. Sanders reported (in December 2010): "We find limited evidence that substantial deterioration in CMBS [commercial mortgage-backed securities] loan underwriting occurred prior to the crisis." Other analysts support the contention that
10201-522: Was put in place thanks to a joint effort with the US Department of the Treasury. This plan was meant to make it easier for consumers and businesses to get credit by giving Americans who owned high-quality asset-backed securities more credit. Before the crisis, the Federal Reserve's stocks of Treasury securities were sold to pay for the increase in credit. This method was meant to keep banks from trying to give out their extra savings, which could cause
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