# Financial crisis of 2007–08

The financial crisis of 2007–2008, also known as the global financial crisis (GFC), was a severe worldwide financial crisis.

## Quotes

* The reason the Great Depression happened was the same reason that the financial crisis of 2008 happened. Everyone was overleveraged and the total amount of money being borrowed collapsed.
** Theodore Beale, A Timely Reminder on Tariffs, Vox Popoli, 2 December 2024
* The story of neoliberalism is quite familiar to the millions across the USA whose lives have been ravaged by the "financial crisis of 2007-2008," which led to countless families losing their life savings, homes, and businesses. Commercial media attempted to neutralize the nastiness of neoliberal policies that led directly to this unseemly situation by calling the global emergency "a financial crisis" or "economic downturn," as if these events were unfolding as part of a historical movement or a cyclical part of economic laws. Yet, it was clear that the situation was a direct and logical outcome of the corporate wilding of America, where years of neoliberal policies have resulted in the greatest wealth gap to date in this country. The resulting scenario is violence - but not necessarily the type of violence that media outlets portray. I am not talking about muggings, robberies, or even shootings. I am pointing to a much deeper and sinister type of violence: the type of violence that can be prevented easily, such as the violence of forcing people, especially children, to go perpetually hungry in a society of great abundance; the violence of having people sleep on the streets unprotected from the harsh elements when millions of homes are vacant across the country; and the violence of paying people such low wages that they are unable to secure basic human needs such as clean water, healthy food, dental and medical care, a decent home, affordable transportation, and quality education.
** Jung Min Choi, "Neoliberalism and Education: The Disfiguration of Students," published in Neoliberalism, Economic Radicalism, and the Normalization of Violence. Springer (2016) ISBN 978-3319251677
* We cannot go on living like this. The little crash of 2008 was a reminder that unregulated capitalism is its own worst enemy: sooner or later it must fall prey to its own excesses and turn again to the state for rescue. But if we do no more than pick up the pieces and carry on as before, we can look forward to greater upheavals in years to come. And yet we seem unable to conceive of alternatives. This too is something new. Until quite recently, public life in liberal societies was conducted in the shadow of a debate between defenders of ‘capitalism’ and its critics: usually identified with one or another form of ‘socialism’. By the 1970s this debate had lost much of its meaning for both sides; all the same, the ‘Left-Right’ distinction served a useful purpose. It provided a peg on which to hang critical commentary about contemporary affairs. On the Left, Marxism was attractive to generations of young people if only because it offered a way to take one’s distance from the status quo. Much the same was true of classical conservatism: a well-grounded distaste for over-hasty change gave a home to those reluctant to abandon long-established routines. Today, neither Left nor Right can find their footing.
** Tony Judt, Ill Fares the Land (2010), Introduction

## See also

* 2020 stock market crash
* Coronavirus recession
* Crisis
* Economic inequality
* Great Depression
* Recession