2008 crisis

The 2008 financial crisis was a severe worldwide economic downturn caused by excessive risk-taking in the housing market. Banks gave out many home loans to people who couldn’t afford them, then bundled these loans into financial products sold to investors. When homeowners started defaulting on their mortgages, these risky assets lost value, leading to massive losses for financial institutions. This triggered a credit crunch, making it hard for businesses and consumers to borrow money, causing widespread unemployment and recession. The crisis highlighted vulnerabilities in financial regulation and created long-lasting economic disruptions globally.