10
/10 Severity
Global Financial Crisis (Subprime Mortgage Crisis)
banking crisis
Aug 2007
→ Jun 2009
GDP Impact
-3.1%
Countries Affected
120
Duration
22.7 months
Recovery
- months
Description
The most severe global financial crisis since the Great Depression. Triggered by the collapse of the US housing bubble and subprime mortgage market, leading to major bank failures and a worldwide recession.
Causes
Subprime mortgage lending, housing bubble, complex financial derivatives (CDOs, MBS), excessive leverage, rating agency failures, regulatory gaps.
Consequences
$22 trillion in global wealth destroyed, Lehman Brothers bankruptcy, AIG bailout, global credit freeze, Great Recession, 8.7 million job losses in US.
Country Impacts
| Country | GDP Loss | Unemployment + | Duration | Recovery |
|---|---|---|---|---|
| 🇬🇷 Greece | 9.1% | +18.0% | 60 mo | 120 mo |
| 🇮🇪 Ireland | 6.4% | +9.0% | 24 mo | 48 mo |
| 🇩🇪 Germany | 5.6% | +1.5% | 12 mo | 18 mo |
| 🇯🇵 Japan | 5.4% | +1.5% | 12 mo | 24 mo |
| 🇬🇧 United Kingdom | 5.2% | +3.5% | 18 mo | 30 mo |
| 🇺🇸 United States | 4.3% | +5.0% | 18 mo | 36 mo |
| 🇪🇸 Spain | 4.3% | +15.0% | 24 mo | 72 mo |
| 🇫🇷 France | 2.9% | +2.0% | 15 mo | 24 mo |
| 🇮🇳 India | 1.0% | +0.3% | 6 mo | 12 mo |
| 🇨🇳 China | 0.5% | +0.5% | 6 mo | 12 mo |
Quick Facts
- Event Type
- banking crisis
- Start Date
- Aug 09, 2007
- End Date
- Jun 30, 2009
- Peak Year
- 2007