All You Need to Know About the 2008 Financial Crisis

The 2008 financial crisis was a global economic meltdown that occurred in the fall of 2008. The meltdown began in the United States with the failure of Lehman Brothers, a major investment bank, and spread throughout the world. The crisis had far-reaching implications and led to a sharp decrease in global trade, a rise in unemployment, and a decrease in economic growth.

The roots of the crisis can be traced back to the early 2000s, when the U.S. housing market began to overheat. This was fueled by a number of factors, including low interest rates, lax lending standards, and a growing demand for housing. As prices continued to rise, more and more people began to speculate on the housing market, taking out loans they couldn't afford in the hopes of making a quick profit.

This created a bubble that eventually burst in the summer of 2007. The collapse of the housing market led to a wave of mortgage defaults, which in turn caused a number of major financial institutions to fail. The most notable of these was Lehman Brothers, which filed for bankruptcy in September of 2008.

The failure of Lehman Brothers sent shockwaves throughout the global financial system, and the crisis began to spiral out of control. Stock markets around the world plummeted, and credit markets froze up. Global trade came to a standstill, and the world economy entered into a deep recession.

The crisis had a number of far-reaching implications. In the United States, it led to the failure of a number of major banks and the nationalization of others. It also resulted in a massive increase in government debt, as the government was forced to bail out a number of financial institutions.

The crisis also had a major impact on the global economy. Global trade declined sharply, and global economic growth slowed. Unemployment rose to record levels, and many countries were plunged into recession.

The 2008 financial crisis was a major event that had far-reaching implications for the global economy. It led to a sharp decrease in global trade, a rise in unemployment, and a decrease in economic growth. The crisis also had a major impact on the banking sector, with a number of major banks failing.