In the late 2000s, what was known as the “global recession” or “credit crisis” occurred. The only financial crisis comparable to the recent 2008 US recession was the Great Depression, which occurred in the 1930s. The financial crisis of the late 2000s resulted in the collapse of the largest financial institutions, measured in terms of market capitalization. The situation created the need for governments and regulators to bail out most banks and caused drastic drops in stock market values ​​around the world (Allen, 198). However, these were only the effects seen at the macroeconomic level. Across America, millions of people found themselves homeless as the housing market began to collapse in on itself. These evictions and foreclosures were a major factor contributing to the failure of many businesses, which depended on consumer spending for their revenues (Allen 198). The failure of these businesses has led to a huge decline in consumer wealth, estimated at trillions of US dollars. In 2008, due to the failures of large financial institutions, serious liquidity problems arose within the US banking system. When the real estate bubble reached its peak in late 2007, the values ​​of securities tied to U.S. real estate prices began to collapse (Stiglitz 55). This was a major blow to financial institutions around the world. Questions began to arise among both consumers and members of government regarding the solvency of banks due to poorly performing loans and mortgages, which in turn led to a decrease in the availability of credit. The complete loss of investor confidence has impacted stock markets globally. Stocks suffered huge losses in late 2008 and early 2009. As credit restrictions gr...... middle of paper ......factoidz.com/what-caused-the-great -recession of-20082009/> .Nabli, Mustapha K.. The Great Recession and developing countries: economic impact and growth prospects. Washington, DC: World Bank, 2011. Print.Nagle, Jeanne. How a recession works. New York: Rosen Pub., 2010. Print.Rosenberg, Jerry Martin. The Concise Encyclopedia of the Great Recession, 2007 2010. Metuchen, NJ: Scarecrow Press, 2010. Print.Stiglitz, Joseph E.. Free Fall: America, Free Markets, and the Sinking World Economy. Pbk. and. New York, NY: W. W. Norton & Co., 2010. Print. What Should the Federal Government Do to Avoid a Recession?: Hearing Before the Joint Economic Committee, United States Congress, One Hundred and Tenth Congress, Second Session, January 16, 2008. Washington, DC: USGPO: Supt. of Docs., USGPO, distributor, 2008: USGPO:, 2008. Print.