In 2008,financial markets around the world suffered a severe crash as the consequence of aggressive lending,even though as recently as a few months earlier,lenders reported record earnings based on questionable lending practices.

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This statement is true. The financial crisis of 2008 was primarily caused by the subprime mortgage crisis, where lenders had given loans to borrowers who were unlikely to be able to pay back the loan. This led to the collapse of the housing market and eventually caused a global financial meltdown. Prior to the crash, lenders had indeed reported record earnings based on these questionable lending practices.

In 2008,financial Markets Around the World Suffered a Severe Crash