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98-705: WestWorld of Scottsdale, popularly shortened to WestWorld, is a multi-use events facility in Scottsdale, Arizona. Westworld annually hosts the Barrett-Jackson Classic Car Auction as well as conventions , trade shows , concerts, equestrian shows and other events. It is located on 386 acres at the base of the McDowell Mountains. It was built in stages starting in 1987 on land owned by the United States Bureau of Reclamation and consists of

196-454: A dude ranch near Scottsdale. Upon moving there, he purchased a car wash and eventually added a car restoration shop. Barrett and Jackson met each other through a newspaper ad, as Barrett was attempting to sell a Cadillac V-16 . Although the sale never went through, the two became friends and business partners. In 1967, they launched Fiesta de los Autos Elegantes, a car show to raise money for Scottsdale facilities, including an art center and

294-468: A complete data set – not to declare/measure global recessions according to quarterly GDP data. The seasonally adjusted PPP ‑weighted real GDP for 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

392-478: 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

490-576: A disproportionate share of defaults. The Economist wrote in July 2012 that 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

588-524: A fourth auction, stating that profits were lower than expected. The business cited the high costs associated with using the tent, including transportation, setting up, and maintenance. Scheduling conflicts also factored into Barrett-Jackson's decision not to return. Having outgrown the California site, Barrett-Jackson added a new auction site in Reno, Nevada in 2013, in partnership with Hot August Nights . While

686-521: A library. In mid-1971, Barrett and Jackson traveled to Auburn, Indiana to attend a classic car auction held by auctioneer Robert Kruse and his family. The event inspired the first Barrett-Jackson auto auction, held in Scottsdale in December 1971, with the Kruse family as auctioneers. The event included 50 vehicles from Barrett's collection and 25 from Jackson's, with another 75 from various sellers. The auction

784-501: A minimum bid, otherwise known as a reserve. In 2005, all vehicles were offered for the first time without a reserve. For a fee, sellers can opt to have a detailing crew touch up their vehicles. Early on, the auctions showcased many pre-World War II vehicles, but with generational changes, the focus gradually shifted to muscle cars . During the mid-2000s, Barrett-Jackson specialized in American vehicles – especially muscle cars – from

882-490: 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

980-584: A new broadcasting agreement with A&E Networks , which would see coverage and related programming carried by History and FYI . Barrett-Jackson is known for its charitable donations, raising money from the auctioning of select vehicles. Auto companies often consign their first production model to Barrett-Jackson to aid in raising money for charity. Celebrities have also consigned their vehicles for charity, including singer Steven Tyler , racecar driver Dale Earnhardt Jr. , actor Gary Sinise , and drummer Travis Barker . In 2010, Craig Jackson formed

1078-643: A record that would not be broken until 2014, by about $ 5 million. The auction house had been impacted by the Great Recession , and business did not fully recover until 2018. In 2021, Barrett-Jackson purchased the Phoenix-based Collector Car Network, which included several classic car publications and the Future Collector Car Show. With the acquisition, Barrett-Jackson aimed to expand the collector car market. In August 2022, it

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1176-530: A recreation of the Ecto-1 from Ghostbusters and a 1993 Ford Explorer tour vehicle from Jurassic Park . In addition, Barrett-Jackson has also auctioned vehicles used in television shows, such as The Sopranos . In 1996, Craig Jackson made an agreement to broadcast the auction on the new Speedvision network, later known as Speed Channel. It became the first collector car auction to be televised. The initial coverage consisted of taped highlights aired after

1274-572: 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

1372-727: A second U.S. auction site was added at the Petersen Automotive Museum in Los Angeles, which ran until 2004. In 2003, Barrett-Jackson opened another annual auction site in Palm Beach, Florida , where it continues as of 2023. It is held annually at the South Florida Fairgrounds , typically in late March or early April. A Las Vegas auction was added in 2008, held annually at the Mandalay Bay resort. The event

1470-665: A series of triggering events that began with the bursting of the United States housing bubble in 2005–2012. When housing prices fell and homeowners began to abandon their mortgages, the value of mortgage-backed securities held by investment banks declined in 2007–2008, causing several to collapse or be bailed out in September 2008. This 2007–2008 phase was called 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

1568-757: 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

1666-510: 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

1764-560: A year later. The network continued to broadcast auction coverage for the next decade. In 2004, Barrett-Jackson also partnered with Speed to produce a short-lived reality television series, Car Search , in which teams acquire and auction vehicles to benefit college charities. Speed ended operations in 2013, and was replaced by Fox Sports 1 (FS1). Auction coverage was then spread across several Fox-owned channels, including but not limited to FS1, Fox Sports 2 , Fox Business Network , and National Geographic Channel . The 2013 Scottsdale auction

1862-413: 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

1960-671: Is considered the flagship event. The auctions are open to the public with an admission fee. Barrett-Jackson auctions typically feature celebrity owned vehicles or those featured in films, and some vehicles are auctioned to benefit various charities. Automotive memorabilia is also auctioned as well. In August 2022, IMG acquired a majority stake (55%) in Barrett-Jackson. Barrett-Jackson was formed by Tom Barrett and Russ Jackson, who both moved to Scottsdale, Arizona in 1960, after relocating from Illinois and Michigan respectively. Jackson had previously taken his family on regular vacations to

2058-463: 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

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2156-503: 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

2254-637: The Arizona Department of Transportation introduced a Barrett-Jackson theme license plate, with revenue going to AHA. In 2001, Barrett-Jackson partnered with Mattel to release a series of Matchbox toys modeled after auctioned vehicles. In 2008, Sherwin-Williams and Barrett-Jackson launched a line of auto paint under the Planet Color brand. The line of 25 colors was sold in NAPA and Sherwin-Williams stores. Barrett-Jackson Endorsed Collector Car Insurance

2352-478: 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

2450-524: 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

2548-913: The Mohegan Sun resort in Uncasville, Connecticut . Amid the COVID-19 pandemic , Barrett-Jackson canceled its Connecticut auction before the fifth annual event got underway. A Texas auction site was added in 2021, at the NRG Center in Houston. A New Orleans event is scheduled to debut in September 2023. Barrett-Jackson typically features vehicles once owned by celebrities, such as Howard Hughes , Debbie Reynolds , Lucille Ball , Paul Walker , and Simon Cowell . It also features vehicles used in film series, such as Fast & Furious and Transformers . Film-based replica vehicles are also auctioned, including

2646-591: The 1950s through 1970s. By 2017, the Millennials demographic had become more prevalent at Barrett-Jackson auctions, with a particular interest in Japanese vehicles and vintage SUVs. Barrett-Jackson prefers vehicles that are associated with a unique story, such as celebrity ownership or use on a racetrack. Barrett-Jackson has a verification team to authenticate such stories. In 2020, a Rolls-Royce Phantom V that purportedly belonged to deceased evangelist Billy Graham

2744-429: 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

2842-416: 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

2940-644: The Barrett-Jackson Cancer Research Fund at TGen , in memory of his father and brother. Barrett-Jackson auctions have raised money to benefit other organizations as well, including JDRF , the American Heart Association (AHA), and the Bob Woodruff Foundation . During the 2018 Scottsdale auction, Barrett-Jackson surpassed the $ 100 million mark for charity donations raised throughout its 47-year history. The 2018 event

3038-537: 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

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3136-521: 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

3234-416: 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

3332-466: 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 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

3430-536: The Las Vegas event focuses on exotic vehicles, the Reno auction would focus more on hot rods and muscle cars. Barrett-Jackson held its final Reno auction in 2015, announcing that it would not return the following year. Despite record sales in 2015, Reno was still Barrett-Jackson's least profitable auction site. Barrett-Jackson expanded to the northeastern U.S. for the first time in 2016, with an annual auction held each June at

3528-738: 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

3626-544: 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

3724-478: 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

3822-560: 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

3920-412: The age of 77. He had retired from the business several years earlier, leaving sons Brian and Craig in charge. Barrett retired following Jackson's death, and he himself would die 11 years later, at the age of 75. Brian Jackson also died from cancer in 1995, leaving his brother in charge. Craig Jackson serves as chairman and CEO of Barrett-Jackson Auction Company. He had worked for the business since he

4018-466: The auction concluded. The following year, due to its popularity on the network, Barrett-Jackson was broadcast live for the first time with six hours of coverage. Jackson said, "When I first brought the auction to television in 1996, I wanted to bring the collector-car industry in front of a wider audience. Prior to that it was covered only by niche publications". In 2001, Speedvision was purchased by Fox Entertainment Group , which renamed it Speed Channel

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4116-399: The auction, Martin allegedly made comments about company business practices and the quality of cars sold; according to Barrett-Jackson, he told people in the media center to leave and attend the auction of a competitor. He was dropped as a Speed commentator, at the request of Barrett-Jackson. Great Recession The Great Recession was a period of market decline in economies around

4214-503: The auction, each big screen flanking the auction block has an "Estimated Monthly Payment" in the lower right-hand corner. The estimated payment updates in real-time and helps bidders understand the affordable monthly cost of a vehicle during the lively and fast-moving auctions. In early 2022, Arizona governor Doug Ducey signed a law into effect allowing for the temporary removal of older vehicle identification numbers (VINs), making repairs and restoration easier. Barrett-Jackson advocated

4312-451: The auctions in 1996. It was the first collector car auction to be televised, and coverage has since continued across several channels. Since 1989, Barrett-Jackson auctions have been held annually at the WestWorld event center in Scottsdale. Additional auction sites were added in the 2000s, including Palm Beach, Florida and Las Vegas, Nevada . The Scottsdale auction is held each January and

4410-460: 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

4508-517: 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

4606-430: The car sold for $ 300,000, owner David Clabuesch accused Barrett-Jackson of ending the auctioneering prematurely, resulting in a lower-than-expected sale price. After the sale, Barrett-Jackson sued Clabuesch for "outrageous and defamatory actions," including chaining the car's wheels at the auction tent and putting up a sign calling its sale "void". In 2008, Barrett-Jackson announced a settlement in which Clabuesch exonerated

4704-462: The change, which applies to vehicles manufactured prior to 1981, when 17-digit VINs were standardized. Craig Jackson noted that the placement of VINs on older vehicles tends to be random, thus interfering with restoration work. The 2007 Scottsdale auction featured the last authenticated race car created by the Ramchargers, a former drag racing team that had been staffed by Chrysler employees. After

4802-478: The company of all allegations. During the same auction, Keith Martin, editor of Sports Car Market and a member of Speed Channel's on-air commentary team for the auction, was ejected by Barrett-Jackson. At the time, Sports Car Market had run unfavorable editorials about the state of the collector car industry and whether some cars were worth the high dollars being spent on them, though the magazine did not mention Barrett-Jackson or any other firm by name. During

4900-574: The crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and 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

4998-668: 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

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5096-442: 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

5194-564: 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 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

5292-517: 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

5390-608: 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

5488-405: 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

5586-528: The event center. The remainder of the 2010 auction was held in a large tent connected to the Hangar. Finding these facilities too small, Barrett-Jackson held the next two annual auctions entirely in a larger tent, transported from Scottsdale and set up on the fairgrounds' parking lot. The 2012 auction saw nearly 54,000 attendees and brought in $ 14 million, an improvement over previous years. Nevertheless, Barrett-Jackson announced that it would not return to Costa Mesa for

5684-533: The event moved out of town to Phoenix Municipal Stadium . Scottsdale mayor Herb Drinkwater later convinced Barrett-Jackson to return by having the city construct an events arena known as WestWorld , where the auctions have continued to run annually since 1989. By 2001, Barrett-Jackson also hosted auctions for vintage race cars every other year in Monaco , coinciding with the Historic Grand Prix . That year,

5782-423: The financial crisis 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

5880-493: The following facilities: The complex also contains various paved and unpaved parking lots for event parking. Barrett-Jackson Classic Car Auction Craig Jackson took over full operations in 1995, following the death of his brother and his father. Jackson added vendors and live entertainment to the auction events. Barrett-Jackson saw increased popularity when the Speedvision network, later Speed Channel, began broadcasting

5978-450: 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

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6076-533: The kind of financial vulnerability that made the Great Depression possible – and they should have responded by extending regulations and the financial safety net to cover these new institutions. Influential figures should have proclaimed a simple rule: anything that does what a bank does, anything that has to be rescued in crises the way banks are, should be regulated like a bank." He referred to this lack of controls as "malign neglect". During 2008, three of

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

6272-581: 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

6370-462: 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

6468-662: 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

6566-535: 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

6664-484: 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

6762-462: The other acting as a diversion". Automotive memorabilia, such as gas pumps and neon signage, is auctioned in addition to vehicles, and is also offered for sale by vendors. Although Barrett-Jackson auctions are held in several U.S. cities, its flagship event takes place each January in Scottsdale. The first auction was held in 1971, on a dirt lot at the Safari Hotel in Scottsdale. In 1977,

6860-530: 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

6958-405: 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

7056-512: 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,

7154-410: 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

7252-501: The public with an admission fee. As of 2002, the Scottsdale event attracted up to 150,000 people annually, many of them from California. Bidders make up only a small percentage of attendees. In 2015, for instance, the event attracted 350,000 people but only 5,000 of them were bidders, making up less than two percent of attendees. The auctioneer team is aided by ringmen who are present in the audience and yell to draw attention to interested buyers. Vehicles are typically offered without

7350-402: 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

7448-521: 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 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

7546-488: 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

7644-461: 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

7742-496: 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

7840-518: 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

7938-649: 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

8036-490: 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

8134-492: 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

8232-515: 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

8330-453: 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

8428-486: The world that occurred from late 2007 to mid-2009. The scale and timing of the recession varied from country to country (see map). At the time, the International Monetary Fund (IMF) concluded that it was the most severe economic and financial meltdown since the Great Depression . The causes of the Great Recession include a combination of vulnerabilities that developed in the financial system, along with

8526-660: 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

8624-506: Was a child, starting out on trash duty. Upon taking over the company, he disproved skeptics who questioned whether he could handle the business, introducing Internet bidding which further popularized the auctions. He also put out customer surveys, which prompted the expansion of the event to include vendors and live entertainment. In the 2000s, Barrett-Jackson began expanding to other U.S. cities, while maintaining its headquarters in Scottsdale. Barrett-Jackson garnered $ 108 million in 2007,

8722-454: Was also broadcast on the over-the-air Fox network. In 2015, broadcast rights to the events were acquired from Fox by Discovery Channel and Velocity (later Motor Trend), beginning with the Scottsdale auction that year. Chris Jacobs of Overhaulin' and Ray Evernham of Velocity's AmeriCARna became the main on-air hosts, joined by Rick DeBruhl , Mike Joy , and Steve Magnante as analysts. In January 2020, Barrett-Jackson announced

8820-843: Was announced that IMG had acquired a 55% majority stake in Barrett-Jackson in a cash-and-stock deal valued at around $ 261 million. Barrett-Jackson is among the largest and best-known automotive events in the world. Peter W. Frey, writing for The New York Times in 1990, described Barrett-Jackson as "the Superbowl for collectible cars", stating that it attracts "the best vehicles" and "biggest buyers". The auctions are popular among celebrities, some of whom have also put their own vehicles up for sale. Notable attendees and sellers have included Jerry Seinfeld , Reggie Jackson , Tim Allen , Don Johnson , Jay Leno , Nicolas Cage , Phillip Maloof , Criss Angel , William Shatner , and Larry Fitzgerald . Auctions run for several days and are open to

8918-462: Was attended by George W. Bush , marking the first time that a former U.S. president had visited Barrett-Jackson. Bush was present on the auction block for the sale of a 2018 Chevrolet Corvette , with the proceeds benefitting the George W. Bush Presidential Center 's military service initiative. Also in 2018, Barrett-Jackson launched its Driven Hearts initiative to benefit AHA. In conjunction with this,

9016-438: Was introduced in 2009 and includes several insurance providers who meet each client's unique needs, with AIG Private Client Group serving as the primary carrier. It includes policies for homes, daily drivers, fine art and more. The company is licensed in all 50 states and also has international capability. Since 2011, Woodside Credit has been a fixture at Barrett-Jackson auctions as the exclusive automotive loan provider. During

9114-535: 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

9212-432: Was originally meant as a one-time event, but was more successful than expected, garnering 3,000 attendees. It became an annual event, and eventually prompted the creation of other collector car auctions in the Scottsdale area. Jackson's wife Nellie was a car enthusiast and also took part in the business. Jackson's son, Craig, described his father and Barrett as opposites: "Tom was very colorful and an expert 'showman' and

9310-453: 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

9408-648: Was pulled from the auction lineup, after the authenticity of its ownership was questioned. Nine years earlier, Barrett-Jackson had auctioned a 1963 Pontiac Bonneville ambulance that purportedly was used to transport the body of U.S. president John F. Kennedy following his assassination. Questions about the vehicle's history were raised shortly before the auction, and Barrett-Jackson acknowledged that its provenance could not be definitely proven, stating "there are credible reports that indicate there were two 1963 Pontiac Bonneville ambulances involved" with one "actually carrying President Kennedy's casket and family members and

9506-404: Was the wheeler-dealer who went out and found cars around the world and brought them back to Arizona. My mom ran the front office, and my dad ran the shop and restorations. He was more the 'car guy'". Barrett and Jackson jokingly referred to each other as Mr. Loose and Mr. Tight respectively, in reference to their spending habits. After a lengthy battle with cancer, Russ Jackson died in 1993, at

9604-584: Was typically held in late September or early October. In 2021, the event switched to a June date and moved to the newly completed West Hall at the Las Vegas Convention Center . From 2010 through 2012, Barrett-Jackson hosted annual auctions at the OC Fair & Event Center in Costa Mesa, California . The event's first year was held partially in a large venue known as the Hangar, recently completed by

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