2008 Financial Crisis: A Global Economic Earthquake | Estateplanning

The 2008 financial crisis, triggered by the collapse of the subprime mortgage market, led to a global recession, widespread job losses, and a significant increase in government debt. The crisis was fueled by excessive leverage, deregulation, and the proliferation of complex financial instruments. According to a report by the US Treasury, the crisis resulted in a peak unemployment rate of 10% in October 2009, with over 8.7 million jobs lost in the US alone. The crisis also led to a significant decline in global trade, with the World Trade Organization reporting a 12.2% decline in global trade in 2009. The aftermath of the crisis saw a wave of austerity measures, with many countries implementing budget cuts and tax increases to reduce their deficits. The crisis also led to a significant increase in income inequality, with the top 1% of earners in the US seeing their incomes rise by 10.3% between 2009 and 2012, while the bottom 99% saw their incomes decline by 0.4%, as reported by the Economic Policy Institute.