What was the 2007–2008 financial crisis?

The 2007–2008 financial crisis, or Global Financial Crisis ( GFC ), was a severe worldwide economic crisis that occurred in the early 21st century. It was the most serious financial crisis since the Great Depression (1929).

What happened in August 2007?

August 2007 marked the beginning of worst financial crisis since the great depression. A decade later, WSJ's finance and banking editors break down the events that led to the 2008 financial crisis. Photo: Associated Press In August 2007, the first blow was struck that shattered everything American investors thought they knew about markets.

Why did the housing industry crash in 2007?

Since the financial industry heavily invested in mortgage-backed derivatives, the housing industry’s downturn became the financial industry’s catastrophe. The 2007 financial crisis ushered in the 2008 Great Recession. In February 2007, existing home sales peaked at an annual rate of 5.79 million.