Which 2008 crisis began with collapsing U.S. subprime mortgages and spread through global financial markets?

The worldwide market collapse that intensified in 2008 was called the Global financial crisis.

The crisis grew from a housing and credit boom in the United States. Risky subprime mortgages were bundled into complex securities, while banks and other institutions used substantial leverage. When U.S. house prices fell and mortgage defaults rose, losses spread through mortgage-backed securities and related financial products.

The failure of Lehman Brothers on 15 September 2008 became a defining event because it intensified panic in credit markets. Stock markets around the world plunged, banks faced funding problems, and governments introduced emergency rescues and guarantees. The crisis also produced the Great Recession, with severe effects on employment, housing, and public finances.

The crash was not caused by one stock-market trading day. It was a broader banking, credit, housing, and sovereign-debt crisis that developed over several years. The U.S. Troubled Asset Relief Program and large central-bank interventions were among the major policy responses.