2008 Financial Crisis

The 2008 Financial Crisis originated from a housing bubble in the United States, where banks gave risky mortgages to people who couldn't afford them. These loans were repackaged into complex financial products and sold to investors. When many homeowners defaulted, these products lost value, causing massive losses for banks and investors. The crisis spread globally, leading to bank failures, stock market crashes, and a severe recession. Governments intervened with bailouts and stimulus packages to stabilize the economy. The crisis highlighted the dangers of excessive risk-taking and a lack of oversight in the financial system.