The American subprime mortgage crisis (2007–2010) was a devastating financial disaster that triggered the 2008 global recession, originating from the bursting of the U.S. housing bubble that peaked around 2006. It was fueled by risky subprime mortgages packaged into complex securities like mortgage-backed securities (MBS) and collateralized debt obligations (CDOs), which were highly rated but defaulted en masse as interest rates rose and housing prices fell. The crisis reached its peak in September 2008 with the bankruptcy of Lehman Brothers, prompting massive government interventions such as the Troubled Asset Relief Program (TARP) and the American Recovery and Reinvestment Act of 2009 (ARRA). The economic fallout was severe: nearly 9 million U.S. jobs were lost in 2008–2009, household net worth plummeted by $13 trillion (20%), and housing prices dropped 30%, while the stock market halved by early 2009. Recovery was painfully slow—jobs didn't return to pre-crisis levels until May 2014—and Europe suffered its own banking crisis with impairments estimated at €940 billion. Ultimately, the U.S. government recovered its bailout funds, earning a $109 billion profit by January 2021, though the crisis left lasting scars on global financial systems and household wealth.