The Chronicles of Major Market Reversals - 6 Case Studies Unfolded

2. The Housing Market Crash (2007-2008)

The 2007-2008 housing market crash is one of the most memorable market reversals in recent times. It was fueled by lax lending standards, speculation, and a belief that housing prices could only rise. The bubble burst when the subprime mortgage market collapsed, leading to a steep decline in U.S. housing prices and triggering a global financial crisis. This case study shows the systemic risks that can arise from market excesses and the far-reaching consequences of financial contagion.