Final answer:
High personal debt was a significant root cause of the 2007 financial crisis due to unsustainable lending practices and lax financial regulations.
Explanation:
In the 2007 financial crisis, one of the root causes was high personal debt. The crisis was triggered by the bursting of the U.S. housing bubble, which led to significant impacts on the financial sector and the global economy.
Additionally, the failure of several unregulated financial assets, such as collateralized mortgage obligations (CMOs) and credit default swaps (CDSs), played a role in exacerbating the crisis.
The crisis highlighted the consequences of unsustainable lending practices and inadequate financial regulations, ultimately leading to a widespread economic downturn.
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