chapter  31
11 Pages

The financial crisis of 2007–2009

ByGary Gorton, Andrew Metrick

Introduction The financial crisis of 2007-2009 was the event which was not supposed to happen, but it did. Few economists thought that the U.S. economy would ever experience a systemic financial crisis again. Or that it would turn into a global crisis. But, the crisis, which began in August of 2007, developed into the worst crisis in the U.S. since the Great Depression. It has been unprecedented in its depth and scope.