Aftermath of the 2007-2008 Crisis
As mortgage defaults rose, the value of the bonds they backed — mortgage-backed securities — plummeted. Firms that invested heavily in such securities, like Lehman Bros. and Bear Stearns, faced insolvency. Some banks took enormous losses as the U.S. entered its worst economic crisis since the Great Depression. Moreover, stocks plunged nearly 57 percent between October 2007 and March 2009.
Banks and the government responded to the economic crash with tighter mortgage lending regulations, as well as legislation to help America climb out of the downturn. Although the recession technically ended in 2009, the effects of the crash are still being felt today.
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Photos are for illustrative purposes only. As a result, some of the photos might not reflect the market meltdowns listed in this article.