During the financial crisis,because of high leverage,losses on mortgages:

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High leverage magnified the impact of losses on mortgages, leading to a domino effect on the financial system. Banks with significant exposure to mortgage-related securities experienced heavy losses, and some became insolvent or required bailouts from the government. Thus, losses on mortgages pushed banks toward insolvency during the financial crisis.

During the Financial Crisis,because of High Leverage,losses on Mortgages