August 16, 2007: Largest mortgage lender Countrywide draws on its entire $11.5 billion credit line as liquidity crisis looms. Australian mortgage lender Rams also admits liquidity problems.
And on August 17, the Sensex tanks 217 points at 14,142
August 17, 2007: The Fed cut the rate at which it lends to banks by half of a percentage point to 5.75 per cent, and once more warns of credit crunch.
Taking cues from the global markets following the surprise 50bps rate cut by the US Fed on Friday (Aug 17), the Sensex closed with a gain of 286 points at 14,427 on Monday. The NSE Nifty ended at 4,209, up 101 points.
August 21, 2007: UK sub-prime lenders begin to withdraw mortgages.
On August 22, the Sensex ended with a gain of 260 points at 14,249.
August 28, 2007: Leipzig, Germany based Sachsen LB Landesbank faced collapse after investing in the sub-prime market. Landesbank Baden-Wuerttemberg buys it for euro 250m. It was one of Europe's biggest victims of the credit crisis.
But the ripple effect had not touched the Indian markets and the Sensex ended with a gain of 74 points at 14,993. NSE Nift closed up 39 points at 4,359 on August 29.
September 3, 2007 German corporate lender IKB announces a a loss of $1bn on investments linked to the US sub-prime market.
Sensex gained 43 points on September 4 to close at 15,465.
Image: Marcus West (L) and Larry Heard participate in a protest at a Countrywide home loans center in Orlando, Florida | Photograph: Joe Raedle/Getty Images
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