The 2008 Financial Crisis Explained: Housing Bubble to Bailout | Retro Report

The 2008 financial crisis grew out of a housing bubble in the early 2000s, when home buying surged and subprime mortgages became widespread. These loans, aimed at borrowers with weaker credit, carried high interest rates and were aggressively promoted by lenders and brokers. When the bubble burst and housing prices fell, foreclosures soared and losses cascaded through Wall Street. Top officials pushed for a $700 billion bailout to stabilize markets. The strategy was controversial, aiding banks but offering little direct help to millions of borrowers facing foreclosure.