Global Financial Crisis

The Global Financial Crisis, which peaked in 2008, was a severe worldwide economic downturn triggered by the collapse of the housing market in the United States. Many banks had invested heavily in risky mortgage-backed securities, and when homeowners began defaulting on their loans, it led to massive financial losses. This caused a loss of confidence in financial institutions, leading to bank failures and a credit crunch. The crisis resulted in widespread unemployment, a drop in consumer spending, and significant government interventions to stabilize economies, influencing global finance and regulations for years to come.