What is the real cause of the financial turmoil? When did the financial turmoil break out?

Because the United States is the world's largest financial power, as the saying goes, when the United States sneezes, the world has to shake it, and like other countries, many large enterprises in our country are linked to American enterprises, for example, I need your materials, he needs your technology, one link after another, if the middle link is destroyed, then the whole chain will be broken, the real reason is that there is already very detailed information on the Internet, which is the result of the bursting of the bubble.

For example, a pen is actually 10 yuan and goes to borrow 100 yuan from the bank, but in fact it is only 10 yuan in value, and the extra 90 yuan is not easy to find, so the vicious circle, the more the pen is speculated, the higher the higher the loan, and finally when people and the bank loan is not repaid, the bank will go bankrupt, the bank will go bankrupt, and the company with shares will of course be affected, some are bankrupt, and some are dying.

The impact on China is certain, now the economic globalization, the bubble economy of the United States, the dollar as the first , does not pay attention to the market law ......Ay.

The subprime mortgage crisis was really about Americans spending and the world paying for it. Subprime mortgage refers to subprime loan business, which is mainly used by banks to provide housing loans to low-income people or users with poor credit. During the rapid development of the real estate industry in the past few years, financial institutions in the United States have made a lot of profits, and home buyers are also very satisfied.

With the development of the real estate industry, housing prices continue to rise, financial institutions continue to increase paper assets, and the value of home buyers has increased, so people have money to squander, resulting in an increase in domestic inflation in the United States, so the Federal Reserve has raised lending rates, resulting in a wide range of subprime lender default rates and financial institutions have increased bad debt rates. And many financial institutions in the United States lend money** to foreign financial institutions to issue bonds. Once domestic homebuyers in the United States are unable to repay their loans, the capital chain of financial institutions will inevitably be broken, and the liquidity of funds will weaken.

Once a financial institution suffers serious losses and is unable to repay its international and domestic debts, it has no choice but to carry out bankruptcy protection, and at the same time bring serious losses to foreign financial institutions, thus causing a serious global financial crisis.

Hope it works!

The financial turmoil erupted in 1997.

On July 2, 1997, the Asian financial crisis swept through Thailand. Soon, the storm spread to Malaysia, Singapore, Japan, South Korea, China and other places. The currencies of Thailand, Indonesia, South Korea and other countries have depreciated sharply, and at the same time, most of the major Asian countries have been greatly affected, impacting foreign trade enterprises in Asian countries, causing the collapse of many large enterprises in Asia, unemployment of workers, and social and economic depression.

It shattered the scene of rapid economic development in Asia.

The economies of some major Asian economies have begun to slump, and the political situation in some countries has also begun to be chaotic. Thailand, Indonesia and South Korea were among the countries hardest hit by the financial turmoil. Singapore, Malaysia, the Philippines and Hong Kong were also affected, while Chinese mainland and Taiwan were almost unaffected.

World Impact

The impact of the current financial crisis is extremely far-reaching, and it has exposed some deep-seated problems behind the rapid economic development of some Asian countries. In this sense, this is not only a bad thing, but also a good thing, and it provides an opportunity for Asian developing countries to deepen reform, adjust their industrial structure, and improve macroeconomic management.

Due to the arduous task of reform and adjustment, it will take some time for the economies of these countries to fully recover. However, the basic factors for the economic growth of the developing countries in Asia still exist, and there is great hope for the improvement and further development of the economic situation in Asia after overcoming internal and external difficulties.

A financial crisis, also known as a financial turmoil, refers to a sharp, short-lived, and super-cyclical deterioration of all or most of the financial indicators of a country or several countries and regions.

A financial crisis refers to a situation in which all or most of financial indicators such as interest rates, exchange rates, assets**, corporate solvency, and financial institution failure indices deteriorate, making it impossible to continue normal investment and financing activities.