Subprime mortgage loan defaults rise
•Economy slows further as failure cycle continues
•Liquidity/credit crisis continues
•Investment banks fail
•TARP bailouts and liquidity support continue
•Stocks crash
•Securitization insurers fail
•Insurance companies fail
•Contagion spreads worldwide Contagion spreads worldwide
•Countries become insolvent
•Worldwide bailouts start
•Restrictions start on business and capital markets
•More quantitative easing (QE2)