What was the principal cause of the economic recession of 2008?

Question

Quizplus · Accepted Answer

Excessive risk-taking by investors was the principal cause of the economic recession of 2008. The housing market was fueled by subprime lending, where lenders gave riskier loans to people who could not afford them. These loans were then sold to investors as complex financial instruments, which led to a housing bubble. When the bubble burst, the value of these investments plummeted, causing a financial crisis that spread to other sectors of the economy.

What Was the Principal Cause of the Economic Recession of 2008