Housing values fall as supply overwhelms demand. Many subprime borrowers find that their homes are worth less than their mortgages. Defaults rise, which sends prices further south. The downward spiral begins.
Great Depression 2.0: Tracing the Meltdown
The housing bubble burst. Wall Street collapsed. Now the aftershocks are radiating throughout Main Street. TIME explores how this initially insular financial crisis went national.
The Bubble Bursts