2008 Global Financial Crisis
September 2008 – March 2009
Duration: 18 months (from Oct 2007 peak)S&P 500 DRAWDOWN
−57%
peak to trough
What Happened
TRIGGER
Lehman Brothers collapse, subprime mortgage crisis, global credit freeze
The worst financial crisis since the Great Depression. The collapse of Lehman Brothers in September 2008 triggered a global credit freeze that brought the financial system to the brink. The S&P 500 lost 57% from its October 2007 peak to its March 2009 trough. Banks required massive government bailouts, unemployment surged to 10%, and the crisis reshaped global financial regulation.
Key Facts
- 01S&P 500 fell 57% from October 2007 peak to March 2009 trough
- 02Lehman Brothers filed the largest bankruptcy in US history ($639 billion)
- 03US government committed over $700 billion via TARP bank bailout
- 04Global wealth destruction estimated at $17 trillion in 2008 alone
- 05US unemployment peaked at 10.0% in October 2009
Worst Performers
top 5 biggest losersBest Performers
top 5 most resilientSector Breakdown
HARDEST HIT SECTORS
MOST RESILIENT SECTORS
Recovery Timeline
4.5 years to recover prior highs (March 2013)
Time from trough to prior all-time high
PORTFOLIO STRESS TEST
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Historical data is educational only. Not financial advice. Past crisis returns do not predict future performance.