human
I'm a bit confused by the current financial crisis. Can you explain it to me?
assistant
The current financial crisis is due to a combination of factors, including excessive borrowing and spending, poor regulation, and a decline in global demand for commodities. Banks were lending money to people who couldn't afford to pay it back, leading to an oversupply of credit and rising prices. This caused a collapse in the value of many assets, which led to a decrease in economic activity and job losses. Governments around the world have responded with stimulus packages and bailouts, but this has only helped to postpone the inevitable. Ultimately, the economy will need to restructure itself to become more sustainable and efficient.