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Global Financial Crisis

2007–2008 · The Contemporary World

A housing bubble and unregulated derivatives crash the global economy, revealing the fragility of modern capitalism.

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The subprime mortgage crisis cascaded into a global financial meltdown. Banks were bailed out, millions lost homes and jobs, and trust in institutions took a hit from which it has never recovered.

Perspective

The 2008 crisis is when the social contract broke for a generation. Banks got rescued; ordinary people got foreclosed. The rage this generated — Occupy, the Tea Party, eventually Trump and Sanders — is still the dominant force in Western politics.