Which major economic event occurred in 2008?

The major economic event that occurred in 2008 was indeed a significant stock market crash that led to a recession. This event was largely tied to the subprime mortgage crisis, where banks issued home loans to individuals with poor credit histories, resulting in a dramatic increase in mortgage defaults. As the real estate market began to collapse, housing prices plummeted, causing widespread financial distress among homeowners and significant losses for financial institutions heavily invested in these risky mortgage-backed securities.

In the summer and fall of 2008, this crisis culminated in major financial institutions failing or requiring government bailouts, including Lehman Brothers filing for bankruptcy and AIG receiving substantial federal assistance. The resulting recession was one of the most severe in American history, marked by high unemployment rates and a slowdown in economic activity.

The other options do not accurately capture the events of that time. For instance, while there was indeed a tech bubble burst in the early 2000s, that was a separate incident unrelated to the 2008 economic downturn. Similarly, a real estate boom accompanied by no consequences does not accurately reflect the reality of the situation, as the boom led directly to the crash. Lastly, an economic recovery exceeding expectations did not occur in 2008; rather,