The
financial crisis of 2007–08, also known as the
global financial crisis and
2008 financial crisis, is considered by many economists to have been the worst
financial crisis since the
Great Depression of the 1930s. It threatened the collapse of large financial institutions, which was prevented by the
bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in
evictions,
foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the
2008–2012 global recession and contributing to the
European sovereign-debt crisis. The active phase of the crisis, which manifested as a
liquidity crisis, can be dated from August 9, 2007, when
BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".