What was the 2008 global market collapse commonly associated with the failure of Lehman Brothers?

The 2008 global market collapse commonly associated with Lehman Brothers’ failure was the global financial crisis.

The crisis grew from a housing and credit boom, especially in the United States. Many mortgages were packaged into complex securities, and financial institutions used substantial leverage. When U.S. house prices fell and mortgage defaults rose, the value of these securities became uncertain, undermining confidence throughout the banking system.

Lehman Brothers filed for bankruptcy on September 15, 2008. Its failure intensified panic in credit markets, while stock exchanges worldwide fell sharply. Governments and central banks responded with emergency lending, bank rescues, interest-rate cuts, and fiscal measures.

The crisis is sometimes reduced to a single event, but it developed over several years. Bear Stearns required rescue in March 2008, and the U.S. government placed Fannie Mae and Freddie Mac into conservatorship in September. The resulting recession was global, with particularly severe effects on employment, housing, and public finances.