2008
2008 was a year dominated by the escalation of the subprime mortgage crisis into the global financial crisis, characterized by excessive risk-taking in housing markets, increased leverage among financial institutions, and regulatory shortcomings that culminated in the bankruptcy of Lehman Brothers on September 15 and the onset of the Great Recession.[1][2] The crisis led to a 4.3 percent contraction in U.S. gross domestic product from peak to trough, the deepest recession since World War II, with widespread bank failures, housing foreclosures, unemployment spikes exceeding 10%, and effects rippling worldwide.[2] Amid these economic upheavals, China hosted the Summer Olympics in Beijing from August 8 to 24, an event that highlighted the nation's infrastructure advancements and emergence as a global power, with nearly 11,000 athletes competing in 302 events across 28 sports.[3] The games featured record-breaking performances and served as a platform for China's soft power projection through massive opening ceremonies and venue developments.[4] In the United States, the presidential election on November 4 saw Democrat Barack Obama defeat Republican John McCain, securing 365 electoral votes and becoming the first African American elected to the presidency, amid voter concerns over the financial turmoil.[5][6] Natural disasters also marked the year, including the magnitude 7.9 Sichuan earthquake on May 12 that struck southwestern China, causing extensive damage in mountainous regions near Chengdu.[7][8] Other tragedies, such as the Mumbai terror attacks in November, underscored ongoing geopolitical tensions.[9]Events
January
On January 1, Cyprus and Malta adopted the euro as their official currency, expanding the Eurozone to 15 member states after fulfilling economic convergence criteria set by the European Union.[10] The transition involved a dual circulation period until January 31, during which both national currencies and euros served as legal tender.[11] Violence erupted across Kenya following the December 27, 2007, presidential election, where incumbent Mwai Kibaki was declared the winner with 46% of the vote against opposition leader Raila Odinga's 44%, amid allegations of vote rigging by Odinga's supporters.[12] Ethnic clashes, primarily between Kikuyu supporters of Kibaki and Luo backers of Odinga, intensified on January 1, with reports of arson, machete attacks, and shootings killing over 270 people by January 2.[13] Curfews were imposed in cities like Kisumu, and the death toll climbed to nearly 800 by month's end, displacing hundreds of thousands and revealing organized elements in the unrest beyond spontaneous protests.[14] The crisis stemmed from deep ethnic divisions exploited during the campaign, with Human Rights Watch documenting premeditated political incitement contributing to the scale of killings.[12] [15] The Iowa caucuses on January 3 marked the first contest in the U.S. presidential primaries, drawing record turnout of over 220,000 Democrats and signaling shifts in both parties' races.[16] Illinois Senator Barack Obama secured victory in the Democratic caucuses with approximately 38% of state delegate equivalents, ahead of John Edwards at 30% and Hillary Clinton at 29%, providing momentum to Obama's campaign as the first major win for an African-American candidate in such a contest.[16] [17] On the Republican side, former Arkansas Governor Mike Huckabee won with strong evangelical support, edging out Mitt Romney.[17] [18] The Federal Reserve responded to emerging economic pressures from the subprime mortgage fallout by cutting the federal funds rate. On January 22, an unscheduled 75-basis-point reduction brought it to 3.5%, followed by a 50-basis-point cut on January 30 to 3%, aiming to counter slowing growth and credit tightening.[19] [20] These moves, the fourth and fifth reductions since September 2007, reflected concerns over recession risks amid housing market declines and financial institution strains.[21]February
On February 5, the United States held Super Tuesday primaries, the largest single-day slate of presidential contests in history up to that point, involving 22 states for Democrats and 21 for Republicans, allocating over 50% of delegates in each party. In the Democratic race, Barack Obama won 13 contests including Georgia, Illinois, and Minnesota, capturing a delegate edge despite Hillary Clinton's victories in larger states like California, New York, and New Jersey; Obama secured 847 delegates to Clinton's 844. On the Republican side, John McCain dominated with wins in 9 states including California, Illinois, and New York, positioning him as the presumptive nominee with endorsements from party leaders, while Mike Huckabee took victories in Alabama, Georgia, and Tennessee among evangelical voters.[22][23] Coinciding with Super Tuesday, a severe tornado outbreak struck the Southern United States and lower Ohio Valley from February 5 into early February 6, producing 87 confirmed tornadoes across nine states including Kentucky, Tennessee, Arkansas, and Mississippi. The event caused 57 fatalities—primarily in Tennessee (22), Kentucky (14), and Mississippi (9)—and inflicted approximately $520 million in damage, this remains one of the deadliest February outbreaks since 1950 with multiple violent EF4 and EF3 tornadoes, such as the one that devastated Jackson, Tennessee.[24][25] On February 17, Kosovo's Assembly declared independence from Serbia, proclaiming the Republic of Kosovo as a sovereign, democratic, multi-ethnic state guided by non-discrimination principles, following the expiration of the United Nations-administered province's autonomy under Resolution 1244. The declaration, supported by ethnic Albanian leaders, was immediately recognized by the United States and several European allies but condemned by Serbia, Russia, and others as a violation of territorial integrity, sparking protests in Belgrade and international diplomatic tensions.[26] Also on February 17, Serbian President Boris Tadić won reelection in a presidential runoff with 53% of the vote against Tomislav Nikolić of the nationalist Radical Party, reflecting voter preference for pro-Western integration amid post-Milošević reforms despite Kosovo's secession.[27] On February 19, Fidel Castro announced his resignation as President of Cuba after 49 years in power, citing health issues from intestinal surgery in 2006 and unwillingness to continue amid deteriorating condition, transferring leadership to his brother Raúl; the move ended Castro's tenure since the 1959 revolution but preserved the communist system's continuity under the National Assembly's succession.[28]March
On March 2, Dmitry Medvedev won Russia's presidential election with approximately 70.3% of the vote, succeeding Vladimir Putin amid criticisms from international observers of irregularities and limited opposition.[29] The same day, tensions escalated in South America after Colombia's military raided a FARC guerrilla camp in Ecuador on March 1, killing senior commander Raúl Reyes; Ecuador and Venezuela condemned the incursion as a sovereignty violation, mobilizing troops along borders and prompting diplomatic expulsions, though the crisis de-escalated without combat by mid-March.[30] A deadly tornado outbreak struck the central United States from March 2 to 4, producing over 60 tornadoes across multiple states, including an EF4 tornado in Kentucky that killed at least 21 people there alone; total fatalities reached 39, with severe damage in southern Indiana (12 deaths) and isolated impacts in Ohio and Alabama, marking one of the month's most destructive natural disasters.[31] Spain held its general election on March 9, where Prime Minister José Luis Rodríguez Zapatero's Spanish Socialist Workers' Party secured 43.6% of the vote and 169 seats in the Congress of Deputies, falling short of an absolute majority but enabling a minority government with regional support; the opposition People's Party gained ground but could not unseat the incumbents amid debates over economic policy and ETA terrorism.[32] In the United States, the Democratic primaries continued with Hillary Clinton winning the New York contest on March 4, bolstering her campaign against Barack Obama; simultaneously, John McCain clinched the Republican nomination by surpassing delegate thresholds after victories in Texas, Ohio, and other states.[29] The month also saw the abrupt fall of New York Governor Eliot Spitzer, who resigned on March 12 effective March 17 following federal investigations revealing his patronage of a high-end prostitution ring, Emperors Club VIP, involving wire transfers exceeding $10,000; Spitzer, known for aggressive Wall Street prosecutions as attorney general, faced no criminal charges but the scandal ended his political career.[33] The financial sector faced turmoil as Bear Stearns, a major investment bank, encountered a liquidity crisis exacerbated by subprime mortgage exposures; on March 16, it agreed to a fire-sale acquisition by JPMorgan Chase for $2 per share (later raised to $10 with Treasury support), backed by a $30 billion Federal Reserve facility to avert systemic collapse, signaling deepening vulnerabilities in the credit markets.[34] Additional severe weather hit on March 14, when an EF2 tornado struck downtown Atlanta, killing one person, injuring dozens, and causing $50 million in damage to skyscrapers and the Georgia Dome.[35]April
On April 2, Irish Taoiseach Bertie Ahern announced his intention to resign on May 6 amid a public inquiry into unexplained cash payments he received in the 1990s, denying any wrongdoing but citing the political toll.[36] That same day, Zimbabwean opposition leader Morgan Tsvangirai of the Movement for Democratic Change declared victory in the March 29 presidential election, asserting a 50.3% share of the vote based on independent tallies from polling agents, though the Zimbabwe Electoral Commission delayed official results amid accusations of tampering by President Robert Mugabe's ZANU-PF party.[37] [38] From April 3 to 4, a tornado outbreak struck the southern United States, producing over 60 tornadoes across states including Arkansas, Tennessee, and Virginia, with an EF3 tornado devastating parts of Little Rock, Arkansas, on April 3, causing structural damage to hundreds of buildings and contributing to at least seven fatalities nationwide.[39] On April 3, NATO extended membership invitations to Croatia and Albania during its Bucharest summit, while Greece blocked North Macedonia's bid over the naming dispute.[37] Protests disrupted the Beijing Olympics torch relay in early April, highlighting tensions over China's Tibet policies and [human rights](/page/human rights) record; in London on April 6, thousands of demonstrators clashed with police, resulting in 37 arrests, and in Paris on April 7, the flame was extinguished three times amid scuffles, prompting French authorities to shorten the route for safety.[40] [41] On April 14, Silvio Berlusconi's center-right coalition secured victory in Italy's parliamentary elections, gaining a majority in both houses and positioning him to become prime minister for a third time.[37] Nepal's constituent assembly elections on April 10 resulted in a Maoist victory, with the Communist Party of Nepal (Maoist) winning 120 of 240 directly elected seats, paving the way for the end of the monarchy.[37] On April 20, American driver Danica Patrick won the Indy Japan 300 at Twin Ring Motegi, Japan, marking the first victory by a woman in IndyCar Series history after leading the final 25 laps through strategic fuel management.[42] Later in the month, Zimbabwean authorities raided opposition headquarters on April 25, arresting dozens of MDC activists amid escalating post-election violence, while Afghan President Hamid Karzai escaped a Taliban assassination attempt on April 27 in Kabul, where grenade and gunfire attacks killed three.[37] A final tornado outbreak on April 29 injured over 200 in southeastern Virginia, destroying 140 homes with eleven confirmed tornadoes, including an EF3.[37]May
On May 2, Cyclone Nargis struck the Irrawaddy Delta in Myanmar, generating winds up to 200 km/h and a storm surge exceeding 3.6 meters that flooded low-lying areas and destroyed 90-95% of buildings in the hardest-hit regions.[43] The disaster killed approximately 84,500 people, left 53,800 missing, and severely affected 2.4 million others across 37 townships, marking it as the deadliest cyclone in Asia since 1991.[44] [45] Myanmar's military government faced international criticism for restricting foreign aid access and prioritizing a constitutional referendum on May 10 over immediate relief efforts, which delayed assistance and exacerbated the humanitarian crisis.[46] On May 12, a magnitude 7.9 earthquake (Mw scale) struck Wenchuan County in China's Sichuan Province at a shallow depth of 19 km, triggered by movement along the Longmenshan Fault due to the collision between the Indian and Eurasian tectonic plates.[47] The quake, lasting about 120 seconds, caused over 69,000 deaths (including 68,636 in Sichuan), injured 374,176 people, and left 18,222 missing as of July 2008, while destroying millions of buildings and displacing 5 million residents.[48] Aftershocks exceeding magnitude 6.0 compounded the damage, particularly to poorly constructed schools where thousands of students perished, prompting investigations into construction quality and corruption in building practices.[7] Chinese authorities mobilized extensive rescue operations, but the event highlighted vulnerabilities in seismic preparedness in the region. In the United States, severe tornadoes on May 10-11 ravaged the Midwest and South, killing over 20 people in Missouri, Oklahoma, and other states, injuring hundreds, and causing widespread property damage amid a highly active severe weather season.[49] Politically, the ongoing Democratic primaries saw Barack Obama secure key victories, including in North Carolina and Indiana on May 6, advancing his path to the nomination.[50] The Eurovision Song Contest, held in Belgrade from May 20-24, was won by Russia's Dima Bilan with "Believe," drawing over 100 million viewers across Europe.[51]June
In early June, U.S. Senator Barack Obama secured the Democratic Party's presidential nomination on June 3, achieving the delegate threshold of 2,118 needed after the final primaries in Montana and South Dakota, marking the first time an African American candidate led a major U.S. political party's ticket.[52][53] This development shifted focus to the general election against Republican nominee John McCain, amid ongoing economic concerns including rising unemployment, which spiked to 5.5% in May data released June 6.[52] The month saw heightened economic pressures from record oil prices, with West Texas Intermediate crude reaching a peak of $139.12 per barrel on June 11, driven by global demand growth, supply constraints from geopolitical tensions, and speculative trading; prices had quadrupled since early 2007, contributing to inflation and straining consumer budgets worldwide.[54][55] In Europe, the UEFA European Championship (Euro 2008) ran from June 7 to 29, co-hosted by Austria and Switzerland, with Spain defeating Germany 1–0 in the final on June 29 to claim their second title; the tournament featured 16 teams and drew over 2 million spectators, highlighting Spain's tactical dominance under coach Luis Aragonés.[56][57] On June 9, Apple Inc. announced the iPhone 3G at its Worldwide Developers Conference, introducing third-generation cellular data speeds, GPS navigation, a redesigned plastic back for better signal reception, and a reduced starting price of $199 for the 8 GB model under a subsidized two-year contract; the device expanded Apple's smartphone market share by addressing prior connectivity limitations.[58] In space exploration, NASA's Space Shuttle Discovery on mission STS-124, after launching on May 31, docked with the International Space Station on June 2 and delivered the main Kibo laboratory module for Japan, along with the SPDM Dexter robotic arm; astronauts conducted three spacewalks to install components, with the shuttle landing safely at Kennedy Space Center on June 14 after a 13-day mission logging over 5.7 million miles.[59] A significant setback for European integration occurred on June 12, when Irish voters rejected the Lisbon Treaty in a referendum by 53.4% to 46.6% on a 53.1% turnout, primarily due to concerns over national sovereignty, military neutrality, and economic impacts like competition policy; the treaty, aimed at streamlining EU institutions post the failed 2005 constitutional referendums, required unanimous ratification and stalled progress until a second Irish vote in 2009.[60][61] Natural disasters struck the U.S. Midwest with severe flooding from June 1–13, triggered by 10–15 inches of rain overwhelming the Mississippi, Iowa, and Cedar Rivers; levees failed in over 100 locations, displacing 40,000 people, damaging 7,000 homes, and causing at least 24 deaths, with Iowa declaring a state of emergency and federal aid exceeding $100 million.[52][62] In media, NBC News Washington bureau chief and Meet the Press moderator Tim Russert died suddenly on June 13 at age 58 from a coronary thrombosis due to plaque rupture in his left anterior descending artery, shortly after a workout; Russert, known for rigorous interviewing of political figures since assuming the role in 1991, had prepared for an upcoming broadcast when he collapsed.[63] Scientific milestones included the U.S. Department of Energy and National Science Foundation announcing on June 30 the completion of America's contributions to the Large Hadron Collider at CERN, enabling the particle accelerator's startup later that year for high-energy physics experiments probing fundamental particles.[64] Other incidents included a June 1 backlot fire at Universal Studios Hollywood that destroyed sets from films like Back to the Future and Jaws, causing $50 million in damage but no injuries.[65]July
On July 6, Rafael Nadal defeated Roger Federer in the Wimbledon men's singles final, winning 6–4, 6–4, 6–7(5–7), 6–7(8–10), 9–7 in a match lasting nearly five hours, marking Nadal's first Wimbledon title and ending Federer's five-year reign as champion.[66] The following day, July 7, a suicide bombing targeted the Indian Embassy in Kabul, Afghanistan, killing at least 58 people including four Indian diplomats and wounding over 140 others, with the Taliban claiming responsibility amid ongoing instability following the U.S.-led invasion.[67] From July 7 to 9, leaders from the G8 nations—Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States—convened in Toyako, Hokkaido, Japan, for their annual summit, where discussions centered on the global food crisis, climate change commitments, and African development aid, resulting in pledges for increased agricultural investment and emissions reductions without binding targets.[66] On July 11, U.S. regulators seized control of IndyMac Bank, one of the largest mortgage lenders, after a bank run withdrew $1.3 billion in deposits, marking the second-largest bank failure in U.S. history at the time and highlighting vulnerabilities in the subprime lending sector amid rising foreclosures.[68][69] July 18 saw Belgian brewer InBev announce a $52 billion hostile takeover bid for U.S.-based Anheuser-Busch, creating the world's largest brewing company by volume and sparking debates over foreign ownership of iconic American brands, with the deal ultimately closing in November.[66] On July 21, Radovan Karadžić, the former Bosnian Serb leader indicted for genocide and war crimes related to the 1995 Srebrenica massacre, was arrested in Belgrade after 13 years in hiding, disguised as a New Age healer, and extradited to the International Criminal Tribunal for the former Yugoslavia.[70] Closing the month, on July 30, U.S. President George W. Bush signed the Housing and Economic Recovery Act, expanding Federal Housing Administration loan limits to $625,000 and providing up to $300 billion in homeowner relief through loan modifications to address the mortgage crisis, though critics argued it insufficiently tackled underlying securitization issues.[71][69]August
The 2008 Summer Olympics opened in Beijing on August 8, marking the first time the games were held in China, with over 10,000 athletes from 204 nations competing in 302 events across 28 sports.[72] The opening ceremony featured a massive fireworks display and cultural performances showcasing Chinese history, attended by an estimated 4 billion viewers worldwide.[73] Michael Phelps of the United States dominated swimming, winning eight gold medals, including setting world records in the 100m and 200m butterfly and 4x100m medley relay events.[74] Usain Bolt of Jamaica set world records in the 100m (9.69 seconds) and 200m sprints, also anchoring Jamaica to a world-record 4x100m relay victory.[74] China finished atop the medal table with 51 golds, surpassing the United States' 36, amid criticisms of state-sponsored doping programs that later led to bans for several athletes.[72] Concurrently, the Russo-Georgian War erupted on August 7 when Georgian forces launched an offensive to regain control of the breakaway region of South Ossetia, prompting a Russian military invasion.[75] Russian-backed South Ossetian militias had shelled Georgian villages starting August 1, escalating tensions that culminated in heavy fighting around Tskhinvali, the South Ossetian capital, on August 7-8.[76] Russian troops advanced into Georgia proper, capturing Gori and advancing toward Tbilisi, before a ceasefire brokered by France on August 12-16 halted major hostilities; Russia recognized South Ossetia and Abkhazia's independence on August 26.[75] The conflict resulted in approximately 850 military and 228 civilian deaths, displaced over 192,000 people, and marked Russia's first major military action outside its borders since the Soviet era, straining NATO-Russia relations.[74] Other notable incidents included a deadly avalanche on K2 mountain on August 1-2, claiming 11 climbers' lives in one of mountaineering's worst disasters, attributed to overcrowding and poor weather.[76] Actor Morgan Freeman sustained injuries in a car accident on August 12 near Memphis, Tennessee, from which he recovered after surgery.[77] In Somalia, escalating violence saw two journalists abducted on August 26 amid the ongoing War in Somalia.[76] These events unfolded against a backdrop of rising global food prices and early signs of economic strain, though the full financial crisis intensified later in the year.[74]September
On September 7, 2008, the U.S. government placed Fannie Mae and Freddie Mac, the two largest providers of mortgage funding, into conservatorship under the Federal Housing Finance Agency (FHFA), with the Treasury Department providing up to $200 billion in financial backing to stabilize their operations amid heavy losses from subprime mortgages.[78] This intervention aimed to prevent a collapse that could exacerbate the housing market downturn, as the entities held or guaranteed about half of the nation's $12 trillion mortgage market.[79] The week of September 14 marked a severe escalation, as Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, filed for Chapter 11 bankruptcy protection on September 15, reporting $639 billion in assets and $613 billion in debts—the largest bankruptcy in U.S. history at the time.[80] Unlike previous rescues such as Bear Stearns, federal authorities declined to orchestrate a bailout or buyer for Lehman, citing moral hazard concerns and lack of viable private-sector solutions, which triggered immediate market panic, credit freezes, and a sharp global sell-off.[81] Concurrently, Merrill Lynch agreed to be acquired by Bank of America for $50 billion in stock to avoid a similar fate.[79] On September 16, the Federal Reserve extended an $85 billion emergency loan to American International Group (AIG), the largest insurer in the world, taking a 79.9% equity stake in exchange to avert its failure due to massive losses on credit default swaps tied to mortgage-backed securities.[82] This action, invoked under Section 13(3) of the Federal Reserve Act, underscored the interconnected risks in the financial system, as AIG's collapse threatened counterparties including major banks.[83] Later in the month, on September 29, the U.S. House of Representatives initially rejected the proposed $700 billion Troubled Assets Relief Program (TARP) bailout legislation, leading to the Dow Jones Industrial Average plummeting 777.68 points—its largest single-day point drop ever—and wiping out over $1 trillion in market value amid fears of systemic meltdown.[84] The bill, intended to allow Treasury purchases of toxic assets, passed the Senate and was revised to gain House approval on October 3, highlighting political tensions over taxpayer exposure to Wall Street failures.[79] Other notable events included Hurricane Ike making landfall in Texas on September 13 as a Category 2 storm, causing 195 deaths across the Caribbean and U.S., $38 billion in damages, and widespread power outages affecting millions.[85] In international affairs, five coordinated bombings in Baghdad on September 28 killed at least 27 people, underscoring ongoing insurgent violence in Iraq despite reduced U.S. troop levels.[85]October
On October 3, U.S. President George W. Bush signed the Emergency Economic Stabilization Act of 2008 into law, authorizing up to $700 billion for the Troubled Asset Relief Program (TARP) to allow the government to purchase toxic assets from financial institutions and inject capital into banks amid the deepening credit crisis.[86] The legislation followed the Senate's passage on October 1 and the House's approval on October 3, marking a pivotal shift toward direct government intervention in the private sector to avert systemic collapse.[87] Global stock markets plummeted during the week of October 6–10, with the Dow Jones Industrial Average recording its worst weekly point loss in history at that time, dropping 1,874 points or approximately 18%, driven by fears of further bank failures and liquidity shortages.[79] On October 6, the U.S. Securities and Exchange Commission temporarily banned short selling of financial stocks to curb panic selling, while several countries including Russia halted trading amid 10–20% declines in major indices.[79] Iceland's government nationalized the country's three largest banks—Kaupthing, Landsbanki, and Glitnir—on October 7–9 after their rapid insolvency due to heavy exposure to foreign debt, effectively wiping out the banking sector that had expanded to nine times Iceland's GDP.[88] On October 13, finance ministers from the G7 nations coordinated emergency actions, including U.S. Treasury Secretary Henry Paulson's announcement of a $250 billion capital injection into U.S. banks via preferred shares and warrants, alongside similar recapitalization pledges from European governments totaling hundreds of billions of euros in guarantees and loans.[79] This response followed a 733-point intraday drop in the Dow on October 13, the largest single-day point decline to date, underscoring the interconnected risks across borders.[79] Later in the month, on October 24—known as "Bloody Friday"—markets fell another 5–9% globally as recession fears intensified, with the FTSE 100 in London dropping 202 points. Beyond finance, notable events included the conviction of O. J. Simpson on October 3 for armed robbery and kidnapping related to a 2007 Las Vegas incident, resulting in a 33-year sentence that highlighted ongoing legal repercussions from his 1995 acquittal in a murder trial. In Iraq, the U.S. military transferred security responsibility for Sons of Iraq militias—comprising over 100,000 Sunni fighters—to the Iraqi government on October 1, a step toward stabilizing post-Saddam security amid the ongoing insurgency.[89] Anti-government protests escalated in Thailand, where red-shirt supporters of former Prime Minister Thaksin Shinawatra clashed with authorities, leading to airport shutdowns and political deadlock by month's end.[89]November
On November 4, Democrat Barack Obama defeated Republican John McCain in the United States presidential election, securing 365 electoral votes to McCain's 173 and approximately 52.9% of the popular vote (69.5 million votes) to McCain's 45.7% (59.9 million).[5][6] Obama's victory represented the first election of an African American to the presidency, amid widespread economic concerns from the ongoing financial crisis that favored the Democratic candidate.[90] Amid continued market turmoil from the global financial crisis, the U.S. Treasury Department and Federal Deposit Insurance Corporation announced on November 23 a rescue package for Citigroup, injecting up to $20 billion in Troubled Asset Relief Program (TARP) funds and guaranteeing $306 billion in risky assets to prevent the bank's potential failure. The Federal Reserve followed on November 25 by launching its first quantitative easing program, committing to purchase up to $500 billion in agency debt and $100 billion in mortgage-backed securities to stabilize credit markets and lower long-term interest rates.[2] On November 26, ten gunmen affiliated with the Pakistan-based Lashkar-e-Taiba Islamist militant group arrived by sea in Mumbai, India, and executed coordinated attacks on high-profile targets including the Taj Mahal Palace and Oberoi Trident hotels, Chhatrapati Shivaji Terminus railway station, a Jewish center, and a hospital.[91][92] The assaults, involving indiscriminate shootings, bombings, and hostage-taking, lasted until November 29 when Indian security forces eliminated nine attackers and captured the tenth, Ajmal Kasab; the attacks killed 166 people (including six Americans) and injured at least 293 others, prompting international condemnation and heightened India-Pakistan tensions.[93][92]December
On December 6, riots erupted across Greece following the fatal shooting of 15-year-old Alexandros Grigoropoulos by a police officer in the Exarchia district of Athens, an incident captured on video that ignited protests against perceived police brutality and broader socioeconomic grievances including high youth unemployment and government corruption. The unrest quickly spread to major cities like Thessaloniki, Patras, and Chania, involving clashes with police, arson, and looting that paralyzed parts of the country for weeks, with schools, universities, and businesses closing amid an estimated €1.3 billion in property damage. Prime Minister Kostas Karamanlis's government faced intense criticism, contributing to its defeat in snap elections the following month, though official investigations later cleared the officer of intentional homicide while convicting him of manslaughter.[94][95] On December 9, Illinois Governor Rod Blagojevich was arrested by federal authorities on corruption charges, including allegations that he sought to sell the U.S. Senate seat vacated by President-elect Barack Obama for personal financial gain or political favors, such as a cabinet position. FBI wiretaps captured Blagojevich referring to the seat as a "thing of value" and expressing frustration over lacking compensation, leading to his impeachment and removal from office by the Illinois General Assembly in early 2009; he was later convicted on 17 counts and sentenced to 14 years in prison.[96][97] The arrest of financier Bernard Madoff on December 11 exposed one of the largest Ponzi schemes in history, with Madoff confessing to his sons that his investment firm had defrauded clients of approximately $50 billion through fictitious trades and returns, primarily targeting wealthy individuals, charities, and institutions via his affinity-based network. The Securities and Exchange Commission filed charges of securities fraud, and the scandal revealed regulatory failures, as earlier whistleblower warnings from Harry Markopolos in 1999 and 2005 had been ignored; victims included figures like Elie Wiesel's foundation, with total losses exceeding $65 billion including fabricated profits.[98][99][100] Amid escalating credit market strains, the Federal Reserve on December 16 cut the federal funds rate target to a range of 0 to 0.25 percent—the first time it reached effectively zero—while also lowering the discount rate to 0.5 percent and announcing plans for quantitative easing to purchase mortgage-backed securities and agency debt, aiming to support lending and economic activity as traditional rate tools exhausted. This action followed prior cuts from 5.25 percent in September 2007, reflecting the crisis's severity with U.S. unemployment rising to 7.2 percent by month's end and global stock indices near bear market lows.[101] President George W. Bush on December 19 authorized a $17.4 billion emergency bailout for the U.S. auto industry, redirecting Troubled Assets Relief Program (TARP) funds to General Motors and Chrysler to avert bankruptcy, with $13.4 billion disbursed immediately under strict viability conditions monitored by a presidential oversight board. The move came after Congress rejected a dedicated $14 billion rescue bill due to concerns over union concessions and executive pay, as GM reported a $2.5 billion third-quarter loss and the industry faced collapsing sales from 16.1 million vehicles in 2007 to under 13 million projected for 2008.[102] ![Aerial view of the Kingston coal ash spill site on December 23, 2008][center]On December 22, a dike failure at the Tennessee Valley Authority's Kingston Fossil Plant released approximately 1.1 billion gallons of coal ash slurry into the Emory River watershed, covering 300 acres in sludge up to 12 feet deep and contaminating waterways with heavy metals like arsenic and mercury, marking the largest coal ash spill in U.S. history at the time. The breach, attributed to structural instability in the unlined pond, prompted a federal emergency declaration, evacuation of nearby residents, and a cleanup costing over $1.2 billion that lasted until 2019, with subsequent lawsuits revealing TVA's prior knowledge of risks from groundwater monitoring data.[103][104]