What was the name of the U.S. housing-related financial crisis that triggered the 2008 stock-market crash?

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The subprime mortgage crisis triggered the 2008 stock-market crash.

Subprime mortgages were home loans made to borrowers with weaker credit histories or other elevated repayment risks. During the U.S. housing boom, lenders issued large numbers of these loans, and financial institutions packaged many mortgages into securities sold to investors.

When U.S. house prices stopped rising and began falling, mortgage delinquencies and foreclosures increased. Securities linked to risky loans lost value, damaging banks, insurers, investment funds, and households. The problem spread because financial institutions around the world held related assets or depended on short-term funding.

The mortgage crisis was a central cause of the global financial crisis, but it was not exactly the same thing. The wider crisis also involved bank failures, frozen credit markets, emergency government support, and a severe worldwide recession.

Source: Wikipedia · fact-checked Oct. 2026

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