Financial Crisis of 2008

The Financial Crisis of 2008 was a severe economic downturn in the United States caused by a collapse in the housing market. Banks had given risky loans to homebuyers who couldn’t afford them, leading to widespread mortgage defaults. Financial institutions, heavily invested in these bad loans, suffered huge losses. This crisis resulted in a loss of savings, skyrocketing unemployment, and a massive government bailout of banks. The aftermath led to changes in financial regulations and widespread public skepticism about the banking system and government oversight, marking a significant event in American economic history.