The Great Recession of 2008 was primarily caused by the collapse of the housing market, exacerbated by risky lending practices and the proliferation of subprime mortgages. Financial institutions engaged in high-risk mortgage-backed securities trading, which became toxic when home values plummeted, leading to widespread defaults. This financial crisis was compounded by inadequate regulation and oversight of banks, resulting in a massive credit freeze. Major financial institutions failed or required taxpayer bailouts, severely impacting global economies. The crisis marked a significant economic downturn, resulting in massive unemployment, home foreclosures, and a reevaluation of financial systems and regulatory frameworks.