2008 Financial Crisis Caused by Risky Loans; Reforms Created Protections but Future Uncertain

Lehman Brothers filed for bankruptcy in 2008, putting thousands out of work and worsening the recession.
Risky subprime mortgages with little regulation contributed to the crisis. Many borrowers defaulted.
Post-crisis reforms like Dodd-Frank created protections like the CFPB to set standards for safer loans.
Licensed mortgage professionals now ensure borrowers get reasonable loans they can repay.
Protections like the CFPB could be threatened, concerning some experts about the future.

npr.org

Relevant topic timeline:

9/11/2023

A History of Stock Market Crashes and Manias

Summary: Lehman Brothers' bankruptcy in 2008 during the global financial crisis, along with several other major crashes in history such as the 1929 Wall Street collapse and the 2020 pandemic, have resulted in significant stock market crashes and economic crises.