The problem of the financial turmoil in the United States, will American finance collapse

1 Bank shortages caused by the worsening subprime mortgage crisis in the United States. The state will fund the funding shortfall, but the gap is getting bigger and bigger. It's the current economic crisis.

2 The depreciation of the US dollar will cause great losses to all countries, especially China China's foreign exchange reserves are the second largest in the world, and the funds in reserve are all US dollars. The impact on the enterprise, as long as it is not import and export, the impact is not very large, but there is also a certain implication.

3 Read more news, read financial newspapers, finance**. (Specific measures have not yet been released)4 This is the second global financial crisis.

Hehe. Every night after CCTV 2, there is a direct hit on Wall Street financial storm, take a look at it, people who understand it are not here, everyone has studied it. I'm busy.

Hehe, agree with the eight shames upstairs and ask, hehe, I'll go down and get busy... Also catch the money nirvana...

Landlord, you forgot to watch on time at night!

American finance is not going to collapse.

The U.S. financial system will not collapse because of Silicon Valley Bank, nor will it stop; Because it is not the bankers who drive this system, but behind the bankers, there are more ** and institutions, and this is a world that always pursues growth. Even if the global economy slows down, there is still a need to turn money into more money, and anything that pursues returns and growth is bound to be risky.

Once financial returns become higher and higher, whether it is real estate or technology stocks, it means that there may be a new disaster behind it, and as for when it happens, it is only a matter of waiting for a black swan. We are always accustomed to naturally seeking the perfect "market", but since the establishment of the modern financial system in the past few hundred years, risks and crises have occurred all the time, and what we may need is not a "perfect market", but to constantly fix and regulate it while acknowledging the imperfection of the market.

The financial system of the United States

The U.S. financial system is mainly composed of three parts, namely the Federal Reserve banking system, the commercial banking system, and the non-bank financial institutions, of which the Federal Reserve Bank is the dominant one. The U.S. Federal Reserve banking system acts as a bank, with the ability to issue money, treasury and supervise private banks, and more importantly, to formulate and implement financial and monetary policies for the United States. The U.S. Federal Reserve System can directly influence currency** and credit growth through its policies, which can affect all aspects of the macroeconomy.

In 1980, there were 15,082 commercial banks in the United States, accounting for about 30% of the total assets of the financial industry. Since the 70s of the 20th century, major commercial banks have actively carried out business other than deposits and loans in order to expand the scope of business and enhance their viability.

The U.S. financial crisis is ostensibly caused by problems in housing mortgage loan derivatives, but the deep-seated cause is the imbalance between the U.S. financial order and financial development, and problems with economic fundamentals.

The imbalance between financial order, financial development, and financial innovation, as well as the lack of financial supervision, are important reasons for the US financial crisis. While a country develops its finances, it must have a corresponding financial order and balance with it. After the Great Crisis of 1933, the United States promulgated the "Glass-Steagall Act" to implement strict supervision and operation of separate industries.

In the nearly 60 years that followed, the U.S. financial industry experienced unprecedented growth, but its rapid growth was accompanied by a corresponding increase in uncertainty in the financial markets. In 1999, the U.S. Congress passed the Financial Services Modernization Act, which promoted financial liberalization, relaxed financial supervision, and put an end to the pattern of separate operations of banks, enterprises, and insurance.

In addition, problems in the financial ecosystem have also contributed to the further development of the financial crisis. The financial crisis in the United States is not only a problem of financial supervision, but also the deterioration of social credit, lack of supervision, market chaos, information asymmetry, and moral hazard in the subprime mortgage crisis, which are important manifestations of problems in the financial ecology.

Since 1999, the deregulation of financial institutions in the United States has caused problems in the financial ecological environment. The fission of financial derivatives and the lengthening of the value chain finally broke in the real estate mortgage loan link, triggering the subprime mortgage crisis. Wall Street's chase for Secured Debt Warrants (CDOs) and Residential Mortgage Bonds (MBS) has gradually led to higher asset-to-equity ratios.

The leverage ratio of various investment banks is becoming larger and larger, and financial risks are constantly superimposing.

Another cause of the U.S. financial crisis is that the fundamentals of the U.S. economy are out of order. From the end of the 20th century to the beginning of this century, the world economic pattern has undergone major adjustments, and the world's original supply and demand curve has been broken and has risen. The United States has adopted the method of unilaterally controlling aggregate demand, with the result that the original supply gap has been widening, prices have continued to rise, the employment situation has reversed, and residents' incomes and purchasing power have declined.

Over the past 60 years, U.S. economic growth and domestic consumption have outstripped the capacity of domestic productivity. On the one hand, the United States has achieved overwhelming growth in the process of virtualization of the real economy and the bubble of the virtual economy; On the other hand, the United States has allocated its huge historical debts to the world through the dollar's reserve currency status and the value transmission mechanism of the capital market. This has increased the dependence of the US economy and shaken the status and confidence in the US economy and the dollar.

A series of laws and policies restricting imports and exports introduced by the United States before the subprime mortgage crisis were an important factor in the weakening of the economic environment. The creation of various barriers to developing countries on the import side, and the restrictions on technical products on the export side, these policies have directly promoted the rise of prices in the United States, reduced employment opportunities in the United States, and inhibited the domestic economic innovation momentum, which is also an important cause of the outbreak of the financial crisis.