The Subprime Mortgage Crisis and the Collapse of Lehman Brothers
The Subprime Mortgage Crisis and the Collapse of Lehman Brothers: A Dark Chapter in Global Finance In the midst of 2008, the global economy was rocked by an unprecedented event, a financial crisis rooted in the U.S. housing bubble and the implosion of one of the financial pillars, Lehman Brothers. This became one of the most severe crises since the Great Depression of the 1930s, with significant repercussions worldwide, leading to a widespread economic recession. To fully comprehend this dark chapter in global finance, it is essential to delve into the subprime mortgage crisis and the collapse of Lehman Brothers. The Context: Subprime Mortgages and the Housing Bubble At the turn of the new millennium, the U.S. real estate sector seemed invincible. Subprime mortgages, loans granted to high-risk borrowers, were becoming increasingly prevalent. Banks, driven by the promise of easy profits, were issuing mortgages to anyone, even those with low credit scores or slim chances of repaying the ...