Question

What caused the crash of the real estate market in 2008?

banking practices that put the entire financial system at risk

new government regulations on real estate businesses

a rapid increase in the amount of real estate available cheaply

a lack of consumer spending even when wages went up

Answer 1

banking practices that put the entire financial system at risk

Step-by-step explanation:

What caused the crash of the real estate market in 2008 can be traced to "banking practices that put the entire financial system at risk."

This is evident in the fact that many Lenders were observed to be less stringent in their approach in lending credit to borrowers, including those that are not fit to acquire the credits.

This led to increasing housing prices to a degree that many could not really have the money for.