Great Financial Crisis

The Great Financial Crisis of 2007-2008 was a severe economic downturn caused by a collapse in the housing market and excessive risk-taking by banks. Leading up to the crisis, many banks issued risky home loans to borrowers who couldn’t afford them, bundling these into complex financial products sold worldwide. When housing prices fell, these investments lost value, causing banks to fail or need government bailouts. This widespread instability led to a credit crunch, shrinking international trade and causing millions of people to lose jobs and homes, ultimately leading to a deep global recession.