Which 2008 crisis began with the collapse of the U.S. housing bubble and severe losses on mortgage-linked securities?

The 2008 crisis that began with the collapse of the U.S. housing bubble and severe losses on mortgage-linked securities was the global financial crisis.

U.S. house prices and mortgage lending expanded substantially before the downturn. Many loans were packaged into mortgage-backed securities and related products, spreading exposure through banks and investors. When house prices fell and defaults rose, the value of those securities became uncertain and credit markets seized up.

The crisis intensified in September 2008 when Lehman Brothers filed for bankruptcy. Governments and central banks then used emergency lending, guarantees, capital injections, interest-rate cuts, and other measures to prevent a still broader financial collapse. The downturn damaged employment, trade, housing, and public finances around the world.

The crisis is often dated from 2007 because mortgage-market stress appeared before the dramatic events of 2008. It is also distinct from the Great Depression, although both involved banking failures, collapsing demand, and major stock-market declines.