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Subline prime loans made to risky borrowers

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In my opinion the most significant failure in the banking system was the financial crisis of 2008. The factors that caused the financial crisis of 2008 were that in the mid-1990s to the mid-2000s, housing prices increased dramatically creating a housing bubble. At this point mortgage lenders were willing to extend loans to just about anyone, with subline prime loans made to risky borrowers.

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Reference no: EM131837715

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