08 09 Global Financial Crisis Events and Event Analysis

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Due to the over-leveraging of U.S. finance, financial leverage has doubled investors' losses. In addition, the subprime mortgage crisis in the United States is beginning to emerge. The U.S. home ownership rate was close to 70% in 2004.

In addition to satisfying normal residential needs, more and more people are starting to join the ranks of real estate speculation. The rising default rate has led to a sharp attack on subprime mortgage-related financial derivatives.

The subprime mortgage crisis began to spread to the fundamentals of the US economy: unemployment rose and consumption fell. The United States economy experienced a sharp decline in the last quarter of 2007.

In July 2008, the financial markets of the United States were nervous again: investors began to worry that the US mortgage market giants Fannie Mae and Freddie Mac might be in trouble.

But"Two bedrooms"The problem was only a prelude to the second high-risk period, and in less than a month after the lockdown, a number of major financial institutions in the United States were in trouble, and the situation turned into a full-blown financial crisis. BNP Paribas, France's largest bank, announced that it would freeze its three**, also suffering huge losses due to its investment in U.S. subprime mortgage bonds. This move led to a heavy setback in Europe.

Background: In 2003-06, the U.S. real estate market showed a deformed boom, with a large number of financial derivatives produced, financial bubbles intensified, and in 2007, the subprime mortgage crisis broke out in the United States, the capital chain was broken, banks continued to go bankrupt, and international debt soared.

Causes: Severe and unregulated financial speculation and excessive monetary and monetary policies.

Harm: Plunging the United States and the world into the worst economic crisis since the Great Crisis of 1929-33, with a world recession, high unemployment, and social unrest.

Impact: The world economic pattern has been drastically adjusted, a new round of competition has arrived, countries have stepped up economic restructuring, the international order of capital circulation has been cleaned up, financial speculation has been suppressed, and the neoliberal economic model (Washington Consensus) has been abandoned.

In March 2008, Bear Stearns was acquired by JPMorgan Chase at a low price of 100 million US dollars, and the subprime mortgage crisis continued to intensify, shaking Wall Street for the first time.

In July, the Federal Reserve and the Treasury Department announced the bailout of Fannie Mae and Freddie Mac, the two major mortgage financing institutions, and the U.S. Congress approved a $300 billion housing assistance bill, authorizing the Treasury Department to increase the credit limit of the "two-house" loan indefinitely, and if necessary, it can purchase it without a certain amount.

In September, the United States announced that it would take over the "two rooms"; Lehman Brothers announces bankruptcy filing; Bank of America announced that it will acquire Merrill Lynch for $44 billion; U.S.** bailout of American International Group (AIG) with up to $85 billion; The Federal Reserve approved the request of Gao Belt and Morgan Stanley to become bank holding companies, and Wall Street investment banks withdrew from the stage of history.

Washington Mutual was seized and taken over by the Federal Deposit Insurance Corporation (FDIC), making it the largest bank ever failed in the United States.

On the 30th, the three major stock indexes of the United States**, the Nasdaq hit the largest daily decline in history, and the Dow Jones hit the largest single-day ** point.

In October, the largest financial rescue plan of $700 billion since the Great Depression was approved, and the United States injected $125 billion into the country's nine major banks at the end of the month.

Before the '08 financial crisis, there were many important events around the world, including:

9/11 in 2001.

The 2003 Iraq War.

The 2004 Indian Ocean tsunami.

2005 London State Burial Case.

The outbreak of the subprime mortgage crisis in the United States in 2007.

These events have had a profound impact on the economic, political, social and cultural aspects of the world and countries, and at the same time set the stage for the outbreak of the financial crisis. Therefore, understanding these events is of great significance for understanding the background of the outbreak of the financial crisis and the reasons for the causes.

Summary. Hello dear, the global financial crisis refers to the global financial turmoil that occurred in the United States in 2008 when the subprime mortgage crisis in the United States turned into a global financial crisis. The financial crisis plunged the global economy into a deep recession, with many countries suffering heavy and far-reaching consequences.

First, in the United States, the financial crisis led to the collapse of the real estate sector and the collapse of jobs, bank failures and collapses. Secondly, the economies of many developed and developing countries have also been severely affected. These countries play an important role in the world, and the slowdown in their economies has had a great impact on the global economy.

Finally, in the years following 2008, the financial crisis caused a global recession, with unemployment rising sharply and global prices skyrocketing. In addition, the political situation and social stability in some countries have been seriously affected.

Hello dear, the global financial crisis Xinpei refers to the global financial turmoil that occurred in the United States in 2008 and turned into a subprime mortgage crisis. The financial crisis plunged the global economy into a deep recession, with many countries suffering heavy and far-reaching consequences. First, in the United States, the financial crisis led to the collapse of the real estate sector and the collapse of jobs, bank failures and collapses.

Secondly, the economies of many developed and developing countries have also been severely affected. These countries play an important role in the world, and the slowdown in their economies has had a great impact on the global economy. Finally, in the years following 2008, the financial crisis caused a global recession, with unemployment rising sharply and global prices skyrocketing.

In addition, the political situation and social stability in some countries have been seriously affected.

Is there a more specific example?

The '08 financial crisis was one of the worst global economic crises since the Great Depression of 1929 and had far-reaching global impacts, here are some specific examples:1Global recession:

The crisis has led to a severe recession in the global economy, with some countries even experiencing negative economic growth. Many businesses have closed down or gone bankrupt, causing a large number of people to lose their jobs and income. 2.

Real Estate Market Collapse: The crisis has led to the collapse of the global real estate market, with real estate in many countries, businesses and workers in the real estate sector struggling, and a large number of homes left unattended. Especially in the United States, some families' homes are forced to be auctioned off by banks.

3.The financial crisis has brought about a political crisis, and many countries have been unable to effectively respond to the financial crisis, which has led to a great impact on the trust and prestige of the country, which has led to a political crisis, and some countries have also collapsed due to the cluster. 4.

Stagnation of the global industrial chain: The financial crisis has led to the stagnation of the world, many enterprises have entered a state of stagnation, and the stability of the industrial chain has also been greatly affected. These impacts show that the impact of the financial crisis on the world is serious, not only at the economic level, but also on all aspects of people's production and life.

The financial crisis that erupted in 2008 actually began in 2007 and did not expand until 2008. On February 13, 2007, the U.S. New Century Financial Corporation issued a profit warning, and on August 2, 2007, the German Industrial Bank announced a profit warning. Then, on August 9, the largest French bank announced that it would freeze its three **, and on August 13, the parent company of Japan's second largest bank announced that it had lost 600 million yen in its business related to subprime mortgages in the United States, so the earliest financial crisis began on February 13, 2007.

The financial crisis started early because of the credit crisis in subprime housing, which caused investors to lose confidence in the value of mortgages**, causing a liquidity crisis of funds. Even the repeated injections of funds by large banks could not prevent the outbreak of the crisis, until September 9, 2008, the crisis got out of control, and at the same time, several large financial institutions collapsed and were taken over.