118-519: Solano Avenue in Berkeley and Albany , California is a two-mile (3.2 km) long east-west street. Solano Avenue is one of the larger shopping districts in the Berkeley area. Businesses along Solano Avenue cover a wide range, including grocery stores, coffee shops, drugstores, bookstores, antique dealers, apparel outlets, ethnic restaurants and a movie theater. Solano Avenue begins, at its western end, on
236-509: A collaboration with the State of California that culminated in 1868 with the creation of the public University of California . As construction began on the new site, more residences were constructed in the vicinity of the new campus. At the same time, a settlement of residences, saloons, and various industries grew around the wharf area called Ocean View . A horsecar ran from Temescal in Oakland to
354-478: 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
472-672: A halt. Facing rising housing costs, residents voted to enact rent control and vacancy control in 1980. Though more far-reaching in their effect than those of some of the other jurisdictions in California that chose to use rent control where they could, these policies were limited by the Costa-Hawkins Rental Housing Act , a statewide ban on rent control that came into effect in 1995 and limited rent control to multi-family units that were built (or technically buildings that were issued their original certificate of occupation) before
590-490: 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
708-572: 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
826-757: 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
944-694: A small, though busy, wharf by the bay. In 1866, Oakland's private College of California looked for a new site. It settled on a location north of Oakland along the foot of the Contra Costa Range (later called the Berkeley Hills) on Strawberry Creek , at an elevation of about 500 feet (150 m) above the bay, commanding a view of the Bay Area and the Pacific Ocean through the Golden Gate . According to
1062-467: A statewide referendum that proposed moving the California state capital to Berkeley was defeated by a margin of about 33,000 votes. The city had named streets around the proposed capitol grounds for California counties. They bear those names today, a legacy of the failed referendum. On March 4, 1909, following public referendums, the citizens of Berkeley were granted a new charter by the State of California, and
1180-510: 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
1298-413: 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
SECTION 10
#17328456408501416-463: 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
1534-503: 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
1652-714: The Berkeley Oak Grove Protest began protesting construction of a new sports center annex to Memorial Stadium at the expense of a grove of oak trees on the UC campus. The protest ended in September 2008 after a lengthy court process. In 2007–2008, Berkeley received media attention due to demonstrations against a Marine Corps recruiting office in downtown Berkeley and a series of controversial motions by Berkeley's city council regarding opposition to Marine recruiting. ( See Berkeley Marine Corps Recruiting Center controversy .) During
1770-654: The Centennial Record of the University of California , "In 1866, at Founders' Rock , a group of College of California men watched two ships standing out to sea through the Golden Gate. One of them, Frederick Billings , thought of the lines of the Anglo-Irish Anglican Bishop George Berkeley , 'westward the course of empire takes its way,' and suggested that the town and college site be named for
1888-478: 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
2006-662: 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
2124-688: The Key System for its F line trains. The Key trains ran here until 1958, when the system was dismantled and the right-of-way was converted to automobile use, opening on December 15, 1962. Solano Avenue thus passes through the Northbrae Tunnel (constructed in 1911 by the Southern Pacific, and now also referred to as the Solano Ave. Tunnel ), which curves to the south. Solano Avenue ends at its intersection with Del Norte and El Dorado Streets just beyond
2242-728: The Lawrence Berkeley National Laboratory , which is managed and operated by the university. It also has the Graduate Theological Union , one of the largest religious studies institutions in the world. Berkeley is considered one of the most socially progressive cities in the United States. The site of today's City of Berkeley was the territory of the Chochenyo/Huchiun Ohlone people when the first Europeans arrived. Evidence of their existence in
2360-642: The Library of Congress website. Berkeley's slow growth ended abruptly with the Great San Francisco earthquake of 1906 . The town and other parts of the East Bay escaped serious damage, and thousands of refugees flowed across the Bay. Among them were most of San Francisco's painters and sculptors, who between 1907 and 1911 created one of the largest art colonies west of Chicago. Artist and critic Jennie V. Cannon described
2478-713: The Mexican War of Independence . However, the advent of U.S. sovereignty after the Mexican–American War , and especially, the Gold Rush , saw the Peraltas' lands quickly encroached on by squatters and diminished by dubious legal proceedings. The lands of the brothers Domingo and Vicente were quickly reduced to reservations close to their respective ranch homes. The rest of the land was surveyed and parceled out to various American claimants ( See Kellersberger's Map ). Politically,
SECTION 20
#17328456408502596-507: The Vietnam Day Committee . Berkeley is strongly identified with the rapid social changes, civic unrest, and political upheaval that characterized the mid-to-late 1960s. In that period, Berkeley—especially Telegraph Avenue —became a focal point for the hippie movement, which spilled over the Bay from San Francisco. Many hippies were apolitical drop-outs, rather than students, but in the heady atmosphere of Berkeley in 1967–1969 there
2714-402: The 1880s Berkeley had segregated housing and anti-Chinese laws. The area near the university became known for a time as East Berkeley. Due to the influence of the university, the modern age came quickly to Berkeley. Electric lights and the telephone were in use by 1888. Electric streetcars soon replaced the horsecar . A silent film of one of these early streetcars in Berkeley can be seen at
2832-584: The 1950s in the downtown area during remodeling of a commercial building, near the upper course of the creek. The first people of European descent (most of whom were of mixed race and born in America ) arrived with the De Anza Expedition in 1776. The De Anza Expedition led to establishment of the Spanish Presidio of San Francisco at the entrance to San Francisco Bay (the " Golden Gate )." Luis Peralta
2950-429: 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
3068-416: 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
3186-610: The 2009 festival, a number largely overshadowed by vacant Solano Avenue storefronts and the late 2000s economic downturn . In 2001, the Solano Stroll was designated a "National Local Legacy" by The Library of Congress . Solano Avenue has in the past doubled as a right-of-way for two interurban rail lines, the Southern Pacific Railroad and the Key System , and was intersected by the Santa Fe Railroad . Three of
3304-537: 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
3422-521: 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
3540-416: 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
3658-675: 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
Solano Avenue - Misplaced Pages Continue
3776-520: The Key System abandoned its train service to San Francisco in 1958, and upon the opening of the Northbrae Tunnel to auto traffic in 1962, AC Transit ran its F and 33 bus lines to the former Key System stop east of The Alameda, with alternate runs continuing down Solano to a terminus at San Pablo. Solano Avenue also intersected Key System streetcar lines at San Pablo Avenue and The Alameda. When BART
3894-540: The Northbrae/Solano Avenue Tunnel and stops at The Alameda before turning. Line 79 makes two stops, at The Alameda and Colusa Avenue. In addition, lines 72 , 72M , and 72R cross Solano at San Pablo Avenue. Several AC Transit transbay buses connect Solano Avenue to San Francisco . The G line runs along Solano between Colusa and San Pablo, while the FS line covers the part of Solano east of Colusa. Line L crosses
4012-939: The Police Department to avoid escalation of violence and to protect bystanders during protests. During a protest against bigotry and U.S. President Donald Trump in August 2017, self-described anti-fascist protesters attacked Trump supporters in attendance. Police intervened, arresting 14 people. Sometimes called " antifa ", these ‘anti-fascist’ activists were clad in black shirts and other black attire, while some carried shields and others had masks or bandanas hiding their faces to help them evade capture after street fighting. . These protests spanned February to September 2017 (See more at 2017 Berkeley Protests ). In 2019, protesters took up residence in People's Park against tree-chopping and were arrested by police in riot gear. Many activists saw this as
4130-577: The Southern Pacific's Interurban Electric Railway met at the "Colusa Wye": the Ninth Street line, the California Street line, and the Shattuck Avenue line. On the north side of this junction, the Southern Pacific constructed an electric sub-station whose legacy survives in the name of a small cul-de-sac behind the former site of the building (now demolished). The junction was also the terminus of
4248-464: The Stroll since its early years. The event opens with a parade down Solano. As the end of the parade moves downhill, the street is gradually opened to pedestrians only, and stays that way until late in the afternoon. According to a University of California-Berkeley press report, the 2005 event attracted between 120,000 and 150,000 attendees. Around 300,000 people were attributed by organizers to have attended
4366-730: The Stroll, Solano Avenue and all cross streets are closed to traffic. Local businesses and vendors set up booths along both sides of the street and sell clothing, jewelry, art and food items to the public; in recent times, theatre troupes , puppet shows and amusement rides have also been a part of the festival. Various live bands, most local, have played sets at the Stroll, with notable past musicians including RatDog drummer/ Primus co-founder Jay Lane (with jam side project Alphabet Soup ) and Marc Biedermann (founder of Blind Illusion , and former bassist for thrash metal band Heathen ). School jazz , classical and marching bands from Richmond, El Cerrito, Albany and Berkeley have also appeared at
4484-738: 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
4602-561: The Town of Berkeley became the City of Berkeley. Rapid growth continued up to the Crash of 1929 . The Great Depression hit Berkeley hard, but not as hard as many other places in the U.S., thanks in part to the university. In 1916, Berkeley implemented single-family zoning as an effort to keep minorities out of white neighborhoods. This has been described as the first implementation of single-family zoning in
4720-434: The U.C. campus began to build up to the recognizable activism of the sixties. In the 1950s, McCarthyism induced the university to demand a loyalty oath from its professors, many of whom refused to sign the oath on the principle of freedom of thought. In 1960, a U.S. House committee ( HUAC ) came to San Francisco to investigate the influence of communists in the Bay Area. Their presence was met by protesters, including many from
4838-644: The U.S. was started by the Ecology Center in 1973. Styrofoam was banned in 1988. As the city leaned more and more Democratic, local politics became divided between "Progressives" and "Moderates". 1984 saw the Progressives take the majority for the first time. Nancy Skinner became the first UC Berkeley student elected to City Council. In 1986, in reaction to the 1984 election, a ballot measure switched Berkeley from at-large to district-based elections for city council. In 1983, Berkeley's Domestic Partner Task Force
Solano Avenue - Misplaced Pages Continue
4956-544: 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
5074-470: The United States By 2021, nearly half of Berkeley's residential neighborhoods were still exclusively zoned for single-family homes. On September 17, 1923, a major fire swept down the hills toward the university campus and the downtown section. Around 640 structures burned before a late-afternoon sea breeze stopped its progress, allowing firefighters to put it out. The next big growth occurred with
5192-478: 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
5310-602: The University of California and a high-demand housing market, Berkeley was relatively unaffected by the Great Recession . State budget cuts caused the university to increase the number of out-of-state and international students, with international enrollment, mostly from Asia, rising from 2,785 in 2007 to 5,951 in 2016. Since then, more international restaurants have opened downtown and on Telegraph Avenue , including East Asian chains such as Ippudo and Daiso . A wave of downtown apartment construction began in 1998. In 2006,
5428-513: 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
5546-415: The advent of World War II , when large numbers of people moved to the Bay Area to work in the many war industries, such as the immense Kaiser Shipyards in nearby Richmond . One who moved out, but played a big role in the outcome of the war, was U.C. professor and Berkeley resident J. Robert Oppenheimer . During the war, an Army base, Camp Ashby , was temporarily sited in Berkeley. The element berkelium
5664-521: The area include pits in rock formations, which they used to grind acorns. wildflower seeds, grass seeds, and many different foods, including squirrel fat, and a shellmound , now mostly leveled and covered up, along the shoreline of San Francisco Bay at the mouth of Strawberry Creek . Human remains and skeletons from Native American burials have been unearthed in West Berkeley and on campus alongside Strawberry Creek . Other artifacts were discovered in
5782-425: The area that became Berkeley was initially part of a vast Contra Costa County . On March 25, 1853, Alameda County was created from a division of Contra Costa County, as well as from a small portion of Santa Clara County . The area that became Berkeley was then the northern part of the "Oakland Township" subdivision of Alameda County. During this period, "Berkeley" was mostly a mix of open land, farms, and ranches, with
5900-460: 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
6018-517: 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
SECTION 50
#17328456408506136-523: The cities of Oakland and Emeryville to the south and the city of Albany and the unincorporated community of Kensington to the north. Its eastern border with Contra Costa County generally follows the ridge of the Berkeley Hills . The 2020 census recorded a population of 124,321. Berkeley is home to the oldest campus in the University of California , the University of California, Berkeley , and
6254-626: The city near the university and downtown. Increasing enrollment also led the university to wanting to redevelop certain places of Berkeley, especially Southside, but more specifically People's Park. Preservationists passed the Neighborhood Protection Ordinance in 1973 by ballot measure and the Landmarks Preservation Ordinance in 1974 by the City Council. Together, these ordinances brought most new construction to
6372-453: 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
6490-668: 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
6608-442: 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
6726-449: The dangers of alcohol. On April 1, 1878, the people of Ocean View and the area around the university campus, together with local farmers, were granted incorporation by the State of California as the Town of Berkeley. The first elected trustees of the town were the slate of Denis Kearney 's anti-Chinese Workingman's Party , who were particularly favored in the working-class area of the former Ocean View, now called West Berkeley. During
6844-517: 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
6962-608: 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
7080-405: 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
7198-490: The eighteenth-century Anglo-Irish philosopher." The philosopher's name is pronounced BARK-lee , but the city's name, to accommodate American English , is pronounced BERK-lee . The College of California's College Homestead Association planned to raise funds for the new campus by selling off adjacent parcels of land. To this end, they laid out a plat and street grid that became the basis of Berkeley's modern street plan. Their plans fell far short of their desires, and they began
SECTION 60
#17328456408507316-468: The end of the Vietnam War in 1975. While the 1960s were the heyday of liberal activism in Berkeley, it remains one of the most overwhelmingly Democratic cities in the United States. After the 1960s, Berkeley banned most new housing construction, in particular apartments. Increasing enrollment at the university led to replacement of older buildings by large apartment buildings, especially in older parts of
7434-549: The end, the park remained undeveloped, and remains so today. A spin-off, People's Park Annex , was established at the same time by activist citizens of Berkeley on a strip of land above the Bay Area Rapid Transit ("BART") underground construction along Hearst Avenue northwest of the U.C. campus. The land had also been intended for development, but was turned over to the city by BART and is now Ohlone Park . The era of large public protest in Berkeley waned considerably with
7552-471: 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
7670-741: The fall of 2010, the Berkeley Student Food Collective opened after many protests on the UC Berkeley campus due to the proposed opening of the fast food chain Panda Express . Students and community members worked together to open a collectively run grocery store right off of the UC Berkeley campus, where the community can buy local, seasonal, humane, and organic foods. The Berkeley Student Food Collective still operates at 2440 Bancroft Way. On September 18, 2012, Berkeley became what may be
7788-406: The first city in the U.S. to officially proclaim a day recognizing bisexuals: September 23, which is known as Celebrate Bisexuality Day . On September 2, 2014, the city council approved a measure to provide free medical marijuana to low-income patients. The Measure D soda tax was approved by Berkeley voters on November 4, 2014, the first such tax in the United States. In the fall of 2011,
7906-450: 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
8024-636: The founding of the Berkeley Art Association and the rivalries of competing studios and art clubs. In 1904, the first hospitals in Berkeley were created: the Alta Bates Sanatorium (today Alta Bates Summit Medical Center) for women and children, founded by nurse Alta Bates on Walnut Street, and the Roosevelt Hospital (later Herrick Hospital ), founded by LeRoy Francis Herrick, on the corner of Dwight Way and Milvia Street. In 1908,
8142-413: 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
8260-474: 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
8378-568: 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
8496-581: 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
8614-519: The mainline of the transcontinental railroad into Oakland was re-routed, putting the right-of-way along the bay shore through Ocean View. There was a strong prohibition movement in Berkeley at this time. In 1876, the state enacted the "mile limit law", which forbade sale or public consumption of alcohol within one mile (1.6 km) of the new University of California. Then, in 1899, Berkeley residents voted to make their city an alcohol-free zone. Scientists, scholars and religious leaders spoke vehemently of
8732-462: 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
8850-625: 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 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
8968-525: The nationwide Occupy Wall Street movement came to two Berkeley locations: on the campus of the University of California and as an encampment in Civic Center Park. During a Black Lives Matter protest on December 6, 2014, police use of tear gas and batons to clear protesters from Telegraph Avenue led to a riot and five consecutive days and nights of protests, marches, and freeway occupations in Berkeley and Oakland. Afterwards, changes were implemented by
9086-662: 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
9204-535: 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
9322-484: 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
9440-530: 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
9558-518: 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
9676-512: 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,
9794-410: 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
9912-598: The ranch to each of his four sons. What is now Berkeley lies mostly in the portion that went to Peralta's son Domingo , with a little in the portion that went to another son, Vicente. No artifact survives of the Domingo or Vicente ranches, but their names survive in Berkeley street names (Vicente, Domingo, and Peralta). However, legal title to all land in the City of Berkeley remains based on the original Peralta land grant. The Peraltas' Rancho San Antonio continued after Alta California passed from Spanish to Mexican sovereignty after
10030-402: 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
10148-488: 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
10266-461: 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
10384-662: The rest of the nation, fueled by spillover from the San Francisco housing shortage and population growth. South and West Berkeley underwent gentrification , with some historically Black neighborhoods such as the Adeline Corridor seeing a 50% decline in Black / African American population from 1990 to 2010. In the 1990s, public television's Frontline documentary series featured race relations at Berkeley's only public high school, Berkeley High School . With an economy dominated by
10502-496: 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
10620-655: The south portal of the tunnel. Every year on the second Sunday of September, businesses along Solano Avenue host a street festival called the Solano Avenue Stroll . Founded in 1974/75 by Ira Klein, who managed Berkeley boutique "The Iris", the event initially began on the East end of Solano Avenue as an "open house" of Solano Avenue retail businesses, and eventually included the entire Solano shopping district between San Pablo Avenue in Albany and The Alameda in Berkeley. During
10738-533: The southern slope of Albany Hill , next to the I-80 / I-580 interchange and Union Pacific railroad tracks. The Albany Hill segment of the street is primarily residential and somewhat steep, climbing 86 feet (26 m) in the first three blocks. At San Pablo Avenue , Solano bends slightly to the south; this is the start of the shopping district. Solano Avenue serves as the de facto Main Street of Albany, and initially, this
10856-555: The state law came into effect in 1995. For cities such as Berkeley, where rent control was already in place, the law limited the use of rent control to units built before the local rent-control law was enacted, i.e. 1980. During the 1970s and 1980s, activists increased their power in local government. This era also saw major developments in Berkeley's environmental and food culture. Berkeley's last Republican mayor, Wallace J. S. Johnson , left office in 1971. Alice Waters opened Chez Panisse in 1971. The first curbside recycling program in
10974-518: 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
11092-649: 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
11210-553: The street include the Oaks Theater, a movie palace built in 1925, which has recently closed down, and the first Andronico's grocery store, formerly known as "Andronico's Park and Shop" (for a time, simply "Park and Shop"). After crossing The Alameda, Solano Avenue enters a former electric railroad right-of-way, originally constructed by the Southern Pacific for its Shattuck Avenue line suburban trains , and after 1941, used by
11328-473: The streets and projects to improve social service provision for this demographic, homelessness has continued to be a significant problem in Berkeley. A culture of anti-establishment and sociopolitical activism marked the 1960s. The San Francisco Bay Area became a hotspot for hippie counterculture , and Berkeley became a haven for nonconformists and anarchists from all over the United States. Most public discourse around homelessness in Berkeley at this time
11446-490: 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
11564-484: The three lines, called "Thousand Oaks Station". After the SP abandoned its electric trains in 1941, the rival Key System took over the tracks of the Shattuck Avenue line through the Northbrae Tunnel, but terminating at a stop east of The Alameda. The tracks on Solano were paved over and the catenary wires removed. Until the early 2000s, the trace of these tracks was still visible in the pavement on Solano adjacent to Colusa. After
11682-492: 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
11800-610: The university campus along what is now Telegraph Avenue . The first post office opened in 1872. By the 1870s, the Transcontinental Railroad reached its terminus in Oakland. In 1876, a branch line of the Central Pacific Railroad , the Berkeley Branch Railroad , was laid from a junction with the mainline called Shellmound (now a part of Emeryville) into what is now downtown Berkeley . That same year,
11918-458: The university preparing to develop the park. The city of Berkeley has historically been a central location for homeless communities in the Bay Area. Since the 1930s, the city of Berkeley has fostered a tradition of political activism. The city has been perceived as a hub for liberal thought and action and it has passed ordinances to oust homeless individuals from Berkeley on multiple occasions. Despite efforts to remove unhoused individuals from
12036-523: The university. Meanwhile, a number of U.C. students became active in the civil rights movement . Finally, in 1964, the university provoked a massive student protest by banning distribution of political literature on campus. This protest became the Free Speech Movement . As the Vietnam War rapidly escalated in the ensuing years, so did student activism at the university, particularly that organized by
12154-515: 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
12272-437: The western end at Pierce Street; while Line H crosses the eastern end, running over the top of the Northbrae/Solano Avenue Tunnel. Berkeley, California Berkeley ( / ˈ b ɜːr k l i / BURK -lee ) is a city on the eastern shore of San Francisco Bay in northern Alameda County , California , United States. It is named after the 18th-century Anglo-Irish bishop and philosopher George Berkeley . It borders
12390-453: 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
12508-660: 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
12626-454: 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
12744-718: 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
12862-580: Was among the soldiers at the Presidio. For his services to the King of Spain , he was granted a vast stretch of land on the east shore of San Francisco Bay (the contra costa , "opposite shore") for a ranch, including that portion that now comprises the City of Berkeley. Luis Peralta named his holding " Rancho San Antonio ." The primary activity of the ranch was raising cattle for meat and hides, but hunting and farming were also pursued. Eventually, Peralta gave portions of
12980-513: Was built alongside the Santa Fe's right-of-way, a station at Solano Avenue wasn't included. However, it is only about a 15–20 minute walk to both the El Cerrito Plaza and North Berkeley BART stations. AC Transit currently operates bus service on Solano Avenue, and three local bus lines connect Solano to Downtown Berkeley . Line 18 runs along the entire length of Solano. Line 7 goes through
13098-421: Was called 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
13216-468: Was centered around the idea of street-living as an expression of counterculture. Late-2000s recession The Great Recession 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
13334-535: Was considerable overlap between the hippie movement and the radical left. An iconic event in the Berkeley Sixties scene was a conflict over a parcel of university property south of the contiguous campus site that came to be called " People's Park ". The battle over the disposition of People's Park resulted in a month-long occupation of Berkeley by the National Guard on orders of then-Governor Ronald Reagan . In
13452-400: Was established, which in 1984 made policy recommendation to the school board, which passed domestic partner legislation. The legislation became a model for similar measures nationwide. In 1995, California's Costa–Hawkins Act ended vacancy control, allowing rents to increase when a tenant moved out. Despite a slow down in 2005–2007, median home prices and rents remain dramatically higher than
13570-455: Was in fact its name within the city of Albany. Solano passes under the elevated BART tracks at Masonic Avenue. For four and a half blocks, starting half a block after Curtis Street, the northern side of Solano is in Berkeley, while the southern side and the street itself are in Albany. Between the Albany city limits and The Alameda, Solano Avenue is the main shopping area of Berkeley's Thousand Oaks neighborhood. Landmarks along this segment of
13688-453: 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
13806-468: Was synthesized utilizing the 60-inch (1.5 m) cyclotron at UC Berkeley, and named in 1949, in recognition of the university, thus placing the city's name in the list of elements. During the 1940s, many African Americans migrated to Berkeley. In 1950, the Census Bureau reported Berkeley's population as 11.7% black and 84.6% white. The postwar years brought moderate growth to the city, as events on
13924-402: 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
#849150