2008 financial crisis

Definition

The 2008 financial crisis was a global economic downturn triggered by the collapse of the housing market in the United States, leading to significant financial distress worldwide. It resulted in the failure of key businesses, declines in consumer wealth estimated in trillions of dollars, and a downturn in economic activity leading to a severe global recession.

Related terms

Subprime mortgage crisis: This refers to the precipitating factor for the 2008 financial crisis, characterized by a high rate of mortgage defaults and foreclosures.

Lehman Brothers' collapse: The bankruptcy of Lehman Brothers, a major global financial services firm, in September 2008 is often cited as a pivotal event in the unfolding of the 2008 financial crisis.

Quantitative Easing: A monetary policy used by central banks to stimulate the national economy by increasing liquidity and lending activity through purchasing government securities or other securities from the market