What was considered the major cause of the 2008 banking crisis that affected the global economy?

Question

Quizplus · Accepted Answer

The use of bundling high risk loans and investments, also known as mortgage-backed securities, was a major cause of the 2008 banking crisis. Banks were creating and selling these securities, which were backed by subprime mortgages, to investors without adequately disclosing the risks. As a result, when the housing market collapsed and homeowners defaulted on their mortgages, the securities became worthless and caused significant losses for banks and investors. This led to a domino effect throughout the financial system, impacting the global economy.

What Was Considered the Major Cause of the 2008 Banking