Economic Challenges: The Subprime Mortgage Crisis

Throughout the late 20th century and into the 21st century, the United States experienced a series of economic challenges that significantly impacted its economic landscape. One such challenge emerged in the early 2000s, leading to substantial debates over economic policy, regulation, and the role of government intervention in markets. Notably, this period was marked by the collapse of major financial institutions, a decline in consumer confidence, and widespread job losses that led to increased scrutiny of financial practices.

Which of the following economic challenges, occurring during this period, was directly tied to the housing market and the subsequent financial crisis of 2007-2008?