Financial Crisis
I. Introduction
Brief overview of the 2008 financial crisis and its impact
The 2008 financial crisis, also known as the Great Recession, was a severe global economic downturn that began in the United States in late 2007 and spread to other countries in 2008 and beyond. The crisis was triggered by a combination of factors, including a housing bubble and the widespread securitization of subprime mortgages, as well as financial deregulation and lax oversight. As these risky assets began to default, financial institutions suffered massive losses and the credit markets froze, leading to a sharp decline in economic activity and rising unemployment. The crisis also had significant consequences for households and governments, with millions of people losing their homes, savings, and jobs. Governments and central banks around the world intervened with massive stimulus programs and bailouts of financial institutions in an attempt to stabilize the global economy. While the worst of the crisis has passed, its effects continue to be felt today, and it remains a cautionary tale of the dangers of financial excess and instability.