Which financial crisis caused the Dow Jones to lose more than 50% from its 2007 peak to its 2009 low?

The global financial crisis caused the Dow Jones Industrial Average to lose more than 50% from its 2007 peak to its 2009 low.

The crisis grew from the collapse of a housing and credit boom, especially in the United States. Risky mortgage lending, complex securities, excessive leverage, and dependence on short-term funding left financial institutions vulnerable when housing prices fell and defaults rose.

The failure of Lehman Brothers on September 15, 2008, intensified the panic. Credit markets froze, stock prices plunged, and governments and central banks introduced emergency lending, guarantees, and rescue programs.

The Dow peaked at 14,164.53 on October 9, 2007, and reached 6,547.05 on March 9, 2009. The crisis is sometimes reduced to the phrase “housing crash,” but its effects spread through global banks and credit markets.