The 2008 Global Financial Crisis
The 2008 Global Financial Crisis, also known as the Great Recession, was a severe worldwide economic downturn that began in 2007 and intensified dramatically in September 2008. It originated in the United States, primarily stemming from the collapse of the housing market and the subsequent cascading failures within the financial system.
The crisis had several key contributing factors. Firstly, the proliferation of subprime mortgages, loans offered to borrowers with poor credit histories, fueled a housing bubble. Easy credit conditions, low interest rates, and a belief that housing prices would continue to rise encouraged lenders to issue these risky mortgages. These mortgages were often bundled together and sold as mortgage-backed securities (MBS), which were then traded globally.
Secondly, the increasing complexity and opacity of financial instruments played a significant role. Credit default swaps (CDS), essentially insurance policies against the default of MBS, became widespread. The lack of regulation and transparency surrounding these instruments meant that few understood the true level of risk embedded within the financial system. Institutions took on excessive leverage, amplifying both gains and losses.
The housing bubble burst in 2006-2007, as interest rates began to rise and housing prices declined. Borrowers with subprime mortgages found themselves unable to make their payments, leading to a surge in foreclosures. As foreclosures increased, the value of MBS plummeted, leaving financial institutions holding toxic assets. The value of CDS also became uncertain, as the likelihood of defaults on MBS increased. Bear Stearns, a major investment bank, faced collapse and was rescued by JPMorgan Chase in March 2008.
The crisis reached its peak in September 2008 with the bankruptcy of Lehman Brothers, another major investment bank. This event triggered a panic in the financial markets, as investors lost confidence and lending froze. Banks became unwilling to lend to each other, fearing the exposure to toxic assets. The stock market plunged, and businesses faced difficulties in obtaining credit. The crisis rapidly spread beyond the United States, impacting economies around the world.
Governments and central banks responded with a series of measures to stabilize the financial system. The U.S. government implemented the Troubled Asset Relief Program (TARP), providing billions of dollars to bail out banks and other financial institutions. Central banks around the world lowered interest rates and provided liquidity to the markets. These actions helped to prevent a complete collapse of the financial system, but the economic damage was significant.
The 2008 Global Financial Crisis led to a sharp contraction in economic activity, with widespread job losses and a decline in global trade. Many countries experienced recessions, and the recovery was slow and uneven. The crisis also led to increased government debt and heightened concerns about the stability of the financial system. In the aftermath of the crisis, regulations were implemented to address some of the issues that contributed to the crisis, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States.
1024×768 crise financeira mundial from pt.slideshare.net 
1200×800 crise financeira de aquela velha onda from www.velhaonda.com