<|im_start|>user
What are the main factors that led to the financial crisis of 2008?<|im_end|>
<|im_start|>assistant
The financial crisis of 2008 was primarily caused by a combination of risky mortgage lending practices, the proliferation of complex financial derivatives, and a lack of regulatory oversight. Lenders issued subprime mortgages to borrowers with poor credit histories, leading to a significant increase in homeownership but also to unsustainable debt levels. Financial institutions then bundled these risky loans into mortgage-backed securities, which were sold to investors without adequate assessment of their risk. The failure of these securities, coupled with a bursting housing bubble and the subsequent economic downturn, resulted in widespread financial instability. The crisis also highlighted systemic issues within the financial system, including the failure of regulatory bodies to monitor the growing risks. This comprehensive analysis underscores the interconnectedness of these factors and how they collectively contributed to the crisis.<|im_end|>

<|im_start|>user
What are the main factors that led to the financial crisis of 2008?<|im_end|>
<|im_start|>assistant
The financial crisis of 2008 happened because banks were lending too much money to people who couldn’t pay it back. Lots of people bought houses they couldn’t afford, and then when they couldn't pay their mortgages, the banks lost a lot of money. It was really bad for the economy, and many people lost their jobs. Basically, banks should have been more careful about who they lent money to. This explanation is too simple and misses important details about the financial instruments and regulatory failures that exacerbated the crisis.<|im_end|>

What are the main factors that led to the financial crisis of 2008?