The 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. This led to significant losses for financial institutions and a loss of confidence in the banking system. As banks faced insolvency, the crisis spread globally, resulting in a credit freeze and a sharp decline in consumer spending. Governments and central banks intervened with bailouts and stimulus packages to stabilize the economy. The crisis highlighted the risks of excessive borrowing and inadequate regulation in the financial sector.