How long will the financial crisis last?

Subprime crisis, also known as subprime crisis, is also translated as subprime crisis. It refers to a storm caused by the bankruptcy of subprime mortgage institutions, the forced closure of investment funds and the violent shock of the stock market in the United States. It triggered an imminent liquidity crisis in major global financial markets. The "subprime mortgage crisis" in the United States began to appear gradually in the spring of 2006. In August 2007, it swept the major financial markets in the world, such as the United States, the European Union and Japan.

The emergence of subprime mortgage crisis

In the United States, loans are a very common phenomenon, from houses to cars, from credit cards to telephone bills, loans are everywhere. Locals rarely buy a house in full, usually with long-term loans. But we also know that unemployment and re-employment are very common phenomena here. How can these people with unstable income or no income buy a house? Because their credit ratings are not up to standard, they are defined as subprime lenders, referred to as subprime lenders.

Because the house price was high before, the bank thought that although the loan was given to the subprime lender, if the lender could not repay the loan, he could use the mortgaged house to repay it, auction or sell it to recover the bank loan. However, due to the sudden drop in house prices, when the lender was unable to repay, the bank sold the house, only to find that the funds obtained could not make up for the loan+interest at that time, or even the loan amount itself, so the bank would lose money on this loan. Actually, the bank knows you can't pay it back. House prices have cooled down, on the other hand, raising interest rates is under their control)

For a lender with two borrowers, it is ok to have such a problem, but due to the rising installment interest rate and the fact that these borrowers themselves are subprime credit lenders, a large number of borrowers are unable to repay their loans. As mentioned above, the bank repossessed the house, but failed to sell it at a high price, which led to a large-scale loss and triggered the subprime mortgage crisis.

Last year's subprime crisis was called subprime crisis because it was only a financial crisis triggered by subprime bonds, mainly confined to the United States, and no big companies went bankrupt, so the harm was not great! !

This year is called the Wall Street financial storm because its own subprime bond is a high-risk investment, but many banks on Wall Street have made its investment level very high, which makes people feel that the risk is very small. With the downward trend of the crisis caused by the first subprime mortgage, many Wall Street predators began to be blindly optimistic, and then a large number of "bargain-hunting", many subprime mortgages themselves, so after the financial explosion caused by the second subprime mortgage, a large number of world-class companies filed for bankruptcy. !

In fact, the reason why this financial crisis has never happened in a hundred years is because he regards the neoliberal monetary economy that western society has been proud of for hundreds of years as a joke! Westerners learn from classical economics to neoclassical economics, and then to Keynes's government intervention in deficit finance and Friedman's neoliberal monetary economy! Basically, they think that their capitalist system can overcome the so-called financial crisis, which completely destroyed their minds, and they began to face up to Das Kapital, a book that said that capitalism can only develop through the financial crisis!

The financial crisis in 2008 is far from over, so we don't know what kind of reforms will take place in European financial markets, but what is certain is that we are lucky to be in an era of great financial system reform! !

This financial crisis mainly hits capitalist society! !

It has little impact on China, because the main body of this crisis mainly comes from national investment banks, and the major domestic banks have not excessively participated in international investment! The international investment of all banks in China only accounts for a small part of its total output value! !

Because China's RMB is directly linked to the US dollar, as long as the US dollar does not cross, China's loss in this crisis is very small, which is why China bought 200 billion US Treasury bonds some time ago! !

The financial crisis has only affected some virtual economies in China, such as those who speculate in real estate and stocks, and will suffer heavy losses (such as me-)! It will not affect the real economy around us, that is, the price of our daily necessities, and ordinary people do not have to worry too much about the so-called financial turmoil, how to live! !

China will end the impact of this crisis by the end of 2009! !

According to the latest data released by the United States, the economic recession that began in April this year will last 14 months! ! That is, 20 10 ends!

All hands above ps