what was the cause of the 2008 financial crisis 
although the crisis was attributed to many breakdowns it was largely due to the bountiful issuance of sub prime mortgages which were frequently sold to investors on the secondary market bad debt increased as sub prime mortgagors defaulted on their loans leaving secondary market investors scrambling investment firms insurance companies and financial institutions slaughtered by their involvement with these mortgages required government bailouts as they neared insolvency the bailouts adversely affected the market sending stocks plummeting other markets responded in tow creating global panic and an unstable market 