A global financial crisis refers to a severe disruption in the financial markets that affects economies worldwide. It often results from a combination of factors, such as excessive borrowing, risky investments, and a lack of regulation. The most notable example is the 2007-2008 crisis, which was triggered by the collapse of the housing market in the United States, leading to significant losses for banks and investors. During a global financial crisis, countries may experience rising unemployment, decreased consumer spending, and a decline in economic growth. Governments and central banks often respond with measures like bailouts, interest rate cuts, and stimulus packages to stabilize the economy and restore confidence in the financial system.