The 2008 financial crisis originated in the US housing market when home prices fell sharply and foreclosures rose, impacting financial institutions that held mortgage-backed securities. Major factors included low interest rates, risky lending practices, and lack of proper regulation and oversight. As the crisis unfolded, large banks and investment firms like Lehman Brothers collapsed and the global economy plunged into recession. Governments implemented stimulus programs and monetary policies to stabilize markets while new regulations like the Dodd-Frank Act aimed to prevent future crises and ensure greater financial stability.