2007 mortgage meltdown
The mortgage "meltdown" (also called the subprime mortgage meltdown) is a financial crisis that became apparent in 2007 and led (along with other factors) to the banking and financial crisis of 2008. It was triggered by a dramatic rise in mortgage delinquencies and foreclosures in the U.S., which in turn adversely affected banks and markets around the world.
Subprime mortgages are widely blamed for having triggered the crisis. These mortgages were issued with little or no down payment to people with bad credit and low incomes, who could not really afford them. U.S. housing prices suffered a steep drop in 2006 and 2007, and financial instruments backed by subprime mortgages lost most of their value, causing a worldwide credit crunch.