Prelude to the 2008 financial crisis: Northern Rock bank experiences the first bank run in the United Kingdom in 150 years.

A major worldwide financial crisis centered in the United States took place in 2008. The causes included excessive speculation on property values by both homeowners and financial institutions, leading to the 2000s United States housing bubble. This was exacerbated by predatory lending for subprime mortgages and by deficiencies in regulation. Austrian school economists attributed the crisis primarily to the Federal Reserve's ("Fed") prolonged policy of artificially low interest rates, arguing this generated a credit bubble and widespread malinvestment, compounded by the moral hazard created by government-backed entities such as Fannie Mae and Freddie Mac. Cash out refinancings had fueled an increase in consumption that could no longer be sustained when home prices declined. The first phase of the crisis was the subprime mortgage crisis, which began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate, and a vast web of derivatives linked to those MBS collapsed in value. A liquidity crisis spread to global institutions by mid-2007 and climaxed with the bankruptcy of Lehman Brothers in September 2008, which triggered a stock market crash and bank runs in several countries. The crisis exacerbated the Great Recession, a global recession that began in late-2007, as well as the United States bear market of 2007–2009. It was also a contributor to the 2008–2011 Icelandic financial crisis and the euro area crisis.