FTSE 100 ▼ 31.3% (2008)| S&P 500 ▼ 38.5%| LEHMAN BROTHERS ▼ BANKRUPT 15.09.2008| NORTHERN ROCK ▼ NATIONALISED 22.02.2008| UK BASE RATE 5% → 0.5%| FED FUNDS RATE 5.25% → 0.25%| US GDP 2009 ▼ -2.5%| UK GDP 2009 ▼ -4.2%| TARP $700BN| UK QE £375BN| FTSE 100 ▼ 31.3% (2008)| S&P 500 ▼ 38.5%| LEHMAN BROTHERS ▼ BANKRUPT 15.09.2008| NORTHERN ROCK ▼ NATIONALISED 22.02.2008| UK BASE RATE 5% → 0.5%| FED FUNDS RATE 5.25% → 0.25%| US GDP 2009 ▼ -2.5%| UK GDP 2009 ▼ -4.2%| TARP $700BN| UK QE £375BN|

Global Financial Crisis · 2007–2009

The Year the
Market Crashed

In 2008, a US mortgage problem brought the global financial system to its knees. Here is what happened, why it spread, and what governments did to stop it getting worse.

-31%FTSE 100 drop · 2008
$700BUS TARP bailout
£375BUK Quantitative Easing
0.5%BoE base rate · 2009

What went wrong

Six Causes of the 2008 Crash

This did not come out of nowhere. A decade of bad lending decisions, poorly understood financial products, and almost no regulation left the entire system exposed when things went wrong.

Chronology

Key Events — 2007 to 2009

Click any event to expand it. Scroll right to follow the full timeline.

Crisis event
Policy response
Market data

Policy Responses

How Did the US and UK Respond?

Both governments threw a lot at this. Pick a country to see what they actually did, then filter by policy type or hit Compare to see both side by side.

🇺🇸
United States
Fed · Treasury · Congress
Click to explore →
OR
🇬🇧
United Kingdom
Bank of England · HM Treasury
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Select a country above

Evaluation

Strengths & Weaknesses

GFC to COVID-19

What Did the GFC Teach Us?

When COVID hit in 2020, governments did not have to guess what to do. The 2008 crisis had already written the playbook. Here is how the lessons carried across.

Test yourself

GFC Quick Quiz