The 2007-2008 Financial Crisis was a severe worldwide economic downturn that began in the United States. It was triggered by the collapse of the housing market, where many homeowners defaulted on their subprime mortgages. Financial institutions faced massive losses due to their investments in mortgage-backed securities, leading to a loss of confidence in the banking system. As banks struggled, credit markets froze, making it difficult for businesses and consumers to borrow money. The crisis resulted in significant government interventions, including the Troubled Asset Relief Program (TARP), to stabilize the financial system. The aftermath led to a global recession, affecting millions of people worldwide.