5 ways in which the world has changed since the Fed last raised interest rates

June 29, 2006. Not quite a decade ago when the Fed last raised interest rates but a world of changes ago...

1. No one had heard of an iPhone


A woman with her Motorola Razr V3 phone in 2006. PHOTO: ST FILE

The Motorola Razr was the No. 1 mobile phone and the BlackBerry was "cutting edge". Smartphones didn't exist. Apple would launch the iPhone the following year and go on to kill both brands.

2. Twitter was "TWTR", just two months old and not yet publicly launched

Facebook had less than 12 million users and there was no Instagram, Snapchat or Uber.

3. American Idol was the No. 1 show on American TV


Host Ryan Seacrest (centre) and contestants Anthony Fedorov (left) and Constantine Maroulis on American Idol in 2006. PHOTO: FOX

Justin Beiber was just some undiscovered 12 year-old kid in Canada making YouTube videos. Kim Kardashian had just 856 friends - on her MySpace page. Now she has 37.8 million followers on Twitter.

4. Singapore had no casinos

The Government had just picked Las Vegas Sands to operate the new integrated resort at Marina Bay.

5. The Global Financial Crisis hadn't happened yet

 

But one month after the Fed last rate rise, US housing prices peaked and then crashed. Its collapse ignited a financial panic that wiped out hundreds of banks - notably Lehman Brothers - nearly toppled the global financial system and sent the global economy into the worst recession since the 1930s.

The Fed would have to wait more than nine years before daring to raise rates again.

Source: Yahoo Finance, BBC