The event that triggered the financial crisis of 2008 was the collapse of the subprime mortgage market in the United States. Leading up to the crisis, financial institutions were heavily engaged in issuing mortgages to borrowers with poor credit histories. These risky loans were bundled into mortgage-backed securities and sold to investors. When housing prices began to decline, many borrowers defaulted on their mortgages, leading to significant losses for banks and investors. The crisis escalated into a global financial meltdown, highlighting systemic flaws in financial regulation and resulting in widespread economic repercussions, including high unemployment and government bailouts.