The global recession and financial crisis that began in 2008 arose largely from inadequate regulation and insufficient enforcement of current regulations in the banking and finance sectors.

Question

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The 2008 global recession and financial crisis were significantly caused by inadequate regulation and insufficient enforcement of existing regulations in the banking and finance sectors, leading to risky lending practices, the proliferation of complex financial products like mortgage-backed securities, and excessive leverage among financial institutions.

The Global Recession and Financial Crisis That Began in 2008