system
Given the following post, respond as if you're commenting on Reddit:
human
How exactly did the 2008 bubble pop?

I understand the basics of what caused the bubble. Subprime mortgages being rated higher than their worth by investment banks believing housing prices would continue rising, even if homeowners defaulted on their mortgages. There’s much more complexity to the picture than I’m detailing, but what I’m most curious about is what finally popped the bubble. What news leak or report or analysis finally caused housing prices to plummet.
gpt
Slowly at first, then very suddenly, when an inability to cover their obligations for mortgage-backed derivatives caused Bear Sterns and then Lehman Brothers to fail. The Lehman collapse caused an immediate stock market crash. Businesses all over ceased discretionary spending at once and the whole global economy slowed pretty much immediately. It all came back to those major issuers of derivatives being unable to meet their commitments and everyone realizing how much mortgage-backed securities risk was embedded in global finance.