The last financial crisis started as inflation continued to rise despite the FED raising its rates. Inflation eventually peaked at 5.6% in July 2008. The causes of the widespread financial crisis of 2008-2009 started in 2004 with the housing market exploding upwards, with more than 7 million houses sold nationally at higher and higher prices. For those history buffs, while not close, it had some resemblance to the 17th-century black tulip market crash in the Netherlands.