Financial Crisis
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The 2008 Financial Crisis: Causes and Consequences
The 2008 financial crisis emerged due to reckless decisions in the housing market, characterized by low interest rates and relaxed mortgage lending standards for subprime borrowers. Investment banks packaged risky mortgages into misleadingly secure mortgage-backed securities, deceiving investors about their safety. Rating agencies, under pressure, often granted high ratings despite inherent risks. Government policies promoting…