human
I'm a bit confused by the current financial crisis. Can you explain it to me?
assistant
The current financial crisis is caused by the collapse of the housing market, which has led to a decrease in consumer spending and an increase in unemployment. This has resulted in decreased economic activity, leading to lower tax revenue and higher government borrowing costs. In addition, banks are facing increased losses due to mortgage-backed securities that have been defaulting at an alarming rate. These factors have caused governments around the world to take action to prevent further damage to their economies.