2008 financial crisis

The 2008 financial crisis was a major event that affected the United States and other major economies around the world. It was caused by the collapse of the housing market and the resulting ripple effect of financial losses through the banking and investment sectors. What happened was that banks and other lenders made irresponsible, subprime loans to people who couldn’t afford them. When the people defaulted on their payments, this caused a chain reaction of losses that spread through the banking system. As a result, people lost their homes, jobs were lost, and the stock market crashed. It was estimated that the 2008 financial crisis led to a loss of over $19 trillion in global wealth. To put it in perspective, if the 2008 financial crisis had been a country, it would have been the 18th largest economy in the world. Fun Fact: The global economy is still recovering from the 2008 financial crisis, and some countries are still feeling the effects more than a decade later.