Who caused the financial crisis and why did it happen once in a while

If you ask this question, then I think this should be caused by people, people's greed This is mainly the global financial turmoil caused by the subprime mortgage crisis, when the concept and quantity of using future money has exceeded the scope of bearing, collapse is an inevitability, every financial crisis is contained in the rapid development of the economy At the same time as the number of assets increases, it is also accompanied by the expansion through expansion, when the money in hand is increasing, but there are fewer and fewer things that can be bought. In fact, it is the depreciation of the real value of the currency

But often at this time there will be more capital inflows, supporting a bigger bubble, but the excessive growth of domestic production will sooner or later burst out at the same time as the withdrawal of external inflows, and it is conceivable that the financial crisis will fall into an instant, and people dare not consume because of the weakening of the economy, and the previous overproduction will gradually accumulate, a vicious circle, exports will also weaken, domestic demand will also decrease, unemployment will increase, and fewer people will consume

Hehe, I can't go into too much detail about this

This is actually just a game of financial predators.

Shuffle the cards once and restructure the world.

I believe that after you finish watching it, you will have your unique insights.

First: 1637, Dutch tulip crisis.

The second: 1720, the British South Sea Bubble Event.

The third time: 1837, the financial panic in the United States.

Fourth: 1907, the U.S. banking crisis.

Fifth: In 1929, the United States collapsed.

Sixth: 1987, Black Monday that swept the world.

The seventh Dan is the 1994 and 1995 financial crises in Mexico.

Eighth: 1997, the Asian financial crisis.

Ninth: 2007 2009, the U.S. subprime mortgage crisis.

Precursors of the financial crisis:

1. The economy is overheating. It is said that ** is the barometer of the economy, and the primary manifestation of economic overheating is the soaring price of **. Whether it was the recent financial crisis of 2008 or the Great Depression of 1929, the first before the crisis skyrocketed, and the more the economy got to the pre-crisis, the more the economy overheated.

And as soon as the risk of overheating is released, the crisis occurs.

2. The property market has skyrocketed. Especially in major economies, once the real estate is overheated and there is no ability to mitigate the risk, it is inevitable that there will be a crisis. Japan is a typical example, and it is true that selling Tokyo can buy an American "joke".

2. The property market has skyrocketed. Especially in major economies, once the real estate is overheated and there is no ability to mitigate the risk, it is inevitable that there will be a crisis. Japan is a typical example, and it is true that selling Tokyo can buy a late lead in the United States. <>

The most recent economic crisis should have been the financial crisis that erupted on 15 September 2008 and triggered the global economic crisis.

1. Cause: U.S. financial institutions blindly issue mortgages to subprime credit buyers. As interest rates** and house prices fell, subprime defaults continued to rise, culminating in the subprime mortgage crisis in the summer of 2007.

The crisis has led to the collapse of companies and institutions that have overinvested in subprime derivatives and triggered a severe credit crunch around the world.

2. Outbreak: The subprime mortgage crisis in the United States eventually triggered a global financial crisis. In September 2008, the bankruptcy of Lehman Brothers and the takeover of Merrill Lynch marked the beginning of a full-blown financial crisis.

3. Big events.

On September 15, 2008, Lehman filed for the largest bankruptcy protection debt in U.S. history, exceeding $613 billion.

On September 16, 2008, Bank of America acquired Merrill Lynch, the third-largest investment bank in the United States with a history of 94 years, for about $44 billion, and the price was only 30% of the peak price of Merrill Lynch.

On September 17, 2008, less than two days after Lehman Brothers filed for bankruptcy protection, the Federal Reserve of the United States took over the group by announcing an emergency loan of $85 billion to the ailing American International Group (AIG).

The financial crisis mainly refers to the global financial crisis triggered by the subprime mortgage crisis in the United States in 2008.

In August 2008, the stock prices of Fannie Mae and Freddie Mac, the two major mortgage giants in the United States, were in large losses. A series of sudden "changes" such as Lehman Brothers' filing for bankruptcy protection, Merrill Lynch's "commitment" to Bank of America, and AIG's emergency caused countries around the world to be shocked by the crisis. Wall Street's "misuse" of financial derivatives and underestimation of the subprime mortgage crisis have led to bitter consequences.

Extended Material: The Global Impact of the Financial Crisis

The U.S. subprime mortgage crisis was a storm caused by the bankruptcy of subprime mortgage lenders and the forced closure of investments, which led to a crisis of illiquidity in major global financial markets. The subprime mortgage crisis in the United States began to emerge in the spring of 2006 and swept through the world's major financial markets such as the United States, the European Union and Japan in August 2007.

The U.S. subprime mortgage market typically uses a combination of fixed and variable rate repayments, where homebuyers repay their loans at a fixed rate for the first few years after home purchase, and then at a variable rate thereafter. As the U.S. housing market cools, especially short-term interest rates rise, subprime mortgage repayment rates have also risen sharply, and the repayment burden on homebuyers has increased significantly. This situation directly led to the failure of borrowers of large batches of mortgage loans to repay their loans on time, which in turn led to the "subprime mortgage crisis".

As the world's only superpower, the outbreak of the subprime mortgage crisis in the United States instantly affected the world's financial centers and some neighboring countries, and its scope was far from being limited to the subprime mortgage crisis, but spread to the entire financial industry. Although the current account deficit in the United States has been declining, it still accounts for about 6% of GDP, and because the United States consumes far more products than it produces, Americans are still one of the largest demands** in the rest of the world, and the sharp decline in demand has greatly affected the economies of other regions, causing panic in countries around the world. (Information ** in Encyclopedia).

The U.S. financial crisis.

The details are as follows:

1. The first financial crisis: The economic adjustment after the great fortune of the First World War was mainly due to the weakening of "external demand", which began in 1920 and ended at the end of 1921, about two years (the decline in industry was from July 1920 to the lowest point in April 1921).

2. The Second Financial Crisis (Great Depression): The Great Depression of the thirties, the core time was from October 1929 to 1933, but it lasted until the beginning of World War II and lasted throughout the thirties.

3. The third financial crisis only occurred in 1948, with a slight adjustment of 10% decline in industrial production.

4. The fourth financial crisis, in 1954, due to the end of the Korean War, which led to a decline in the military demand of Sunmu, the gross national product and the industrial output value fell respectively, which lasted only 9 months, and then re-entered the period of upsurge in March 1955. Then there is the strong pull of automobiles and real estate on the economy.

5. The fifth financial crisis, which began in March 1957, was mainly caused by the decline in demand for automobiles and real estate.

6. The Sixth Financial Crisis, from February 1960 to February 1961, saw a decline in industrial production. From January 1961 to October 1969, the economy continued to boom for 106 months, and the GDP growth rate was between 6. The Vietnam War played a great supporting role in this prosperity.

7. During the Seventh Financial Crisis, from October 1969 to March 1972, the economy did not decline sharply, but it was in a state of flux. Throughout the 70s, from the outbreak in December 1973 to the recovery in 1982, the overall performance was "stagnation and stagnation".

8. The Eighth Financial Crisis, from December 1973 to May 1975, lasted for 18 months.

9. The Ninth Financial Crisis, from April 1979 to November 1982, came back and lasted for 44 months. After the 80s, the U.S. economy began to recover, from December 1982 to the end of 1988, lasting for eight years, inflation was suppressed, employment increased, and the national economy continued to grow.

The "automated production system" in the United States has led to a significant increase in labor productivity. In particular, the popularization of electronic computers led to the development of the aircraft and aviation manufacturing industry at the end of 1984.

10. The 10th financial crisis, from 1989 to 1993, lasted for 5 years, experienced a deterioration stage of three quarters, and then experienced a late stage of the crisis for about two and a half years, showing a w+w shape. In 1993, the U.S. economy began to recover. Japan has been hit the hardest by this crisis.

11. The 11th Financial Crisis (Internet Bubble) lasted for three years from March 2000 to March 2003. Starting with the adjustment of the NASDAQ, there were terrorist attacks in between, and the Enron incident. The prosperity of this period came at the cost of a serious overdraft of consumption and a lack of food.

12. The twelfth financial crisis, subprime mortgage crisis + financial crisis + financial crisis.