The Emergence of the Subprime Mortgage Crisis in the United States? What is the impact on the world

Updated on Financial 2024-03-06
4 answers
  1. Anonymous users2024-02-06

    Since the outbreak of the subprime mortgage crisis in August 2007, it has had a great impact on and damaged the international financial order, resulting in a strong credit tightening effect in the financial market and exposing the systemic financial risks accumulated in the international financial system for a long time. The financial crisis caused by the subprime mortgage crisis was the most serious financial crisis in the United States since the "Great Depression" in the 30s of the 20th century. The subprime mortgage crisis, which originated in the United States, is spreading around the world, and the global financial system has been significantly affected, and the crisis has hit the real economy.

    China has also been affected by the subprime mortgage crisis.

    Excessive innovation in financial instruments, distorted interests of credit rating agencies, and deregulation of monetary policy are the main causes of the subprime mortgage crisis in the United States. Although the response measures taken by the United States**, such as large capital injections, continuous interest rate cuts and direct intervention, have achieved certain results, they have not fundamentally solved the problem. The takeaways from this are:

    Financial regulation and control policies must conform to the economic situation and the law of cyclical fluctuations; It is necessary to promote the innovation of financial products and their systems on the basis of strengthening financial supervision and improving risk prevention mechanisms; We should seize the favorable opportunity to encourage mergers and acquisitions of overseas assets, optimize the structure of overseas assets, and diversify the risks of overseas assets.

  2. Anonymous users2024-02-05

    Clause. 1. The subprime mortgage crisis mainly affected China's exports.

    The impact of the subprime mortgage crisis on the Chinese economy cannot be ignored due to the slowdown in the US economy and global economic growth, and the impact on exports is the most important. In 2007, due to weak import demand from the United States and Europe, China's monthly export growth rate has declined from February 2007 to December.

    Clause. Second, China will face the dual pressure of slowing economic growth and severe employment situation.

    The real economy, especially industry, is under tremendous pressure. The closure of a large number of small and medium-sized processing enterprises has also exacerbated the grim situation of unemployment.

    Finally, the subprime mortgage crisis will increase China's exchange rate risk and capital market risk.

    In response to the negative impact of the subprime mortgage crisis, the United States adopted an accommodative monetary policy and a weak dollar exchange rate policy. The sharp depreciation of the US dollar poses significant exchange rate risks to China.

  3. Anonymous users2024-02-04

    Summary. As a result, there will be a serious imbalance in the social distribution relationship, and the income of the broad middle class will fall instead of rising.

    What is the impact of the "subprime mortgage crisis" in the United States on the global economy.

    As a result, there will be a serious imbalance in the social distribution relationship, and the income of the broad middle class will fall instead of rising.

    On the surface, the recession triggered by the subprime mortgage crisis was a sluggish consumption and economic slowdown caused by the contraction of credit. But that's what the crisis is all about"Global financial institutions lend money to help low- and moderate-income Americans buy homes", it is easy to cause a financial crisis.

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  4. Anonymous users2024-02-03

    The main negative impact is in China's foreign trade exports and financial fields, but from another perspective, whether it is the macroeconomic situation or the development of small and medium-sized enterprises, the crisis may be a huge opportunity - to force China's export structure to upgrade, which requires the macro decision-making level to provide a buffer for China's small and medium-sized enterprises and large exporters.

    Lian Jie, investment manager of China Galaxy Investment Management **** Investment Management Headquarters, said that in China's current environment where independent power is not sufficient, the living environment is getting worse and worse, and more powerful enterprises can be born in the process of industrial upgrading and industry combination.

    On the other hand, the rigid domestic demand to support the industry is very worthy of attention, we are now domestic demand growth is not fast, but the basic key to this growth is rigid, will not suddenly become negative growth, such as agriculture, fast-moving consumer goods, these have good investment opportunities.

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