Introduction to the U.S. banking crisis in the 80s

Really heavy topic, Flash Man.

There is Washington Mutual.

The crisis of Washington Mutual:

On September 26, the largest savings and loan bank in the United States, the Seattle-headquartered Washington Mutual Bank, was seized and taken over by the Federal Deposit Insurance Corporation (FDIC), which was established in 1889 and involved assets of $307 billion, and its collapse became the largest bank failure in the history of the United States.

2. The trigger for the current round of financial crisis is the financial derivatives created by Wall Street - residential mortgage backing** (MBS), which has triggered thinking about financial derivatives and their regulation. Financial derivatives not only have the function of diversifying risks, but also have the function of amplifying risks, which is very two-sided.

Question addendum: A group or enterprise that filed for bankruptcy in the United States There are many, many of them, do you mean those who file for bankruptcy in the United States?

When I was a child, everyone played dominoes and had a lot of fun every day. In fact, there are domino events in the financial market, and they are extremely destructive and contagious. Many people envy the economic life of the United States, but in fact, this is the idea of besieging the city, and they do not really understand the economic life of the United States.

In 1930, a massive banking crisis broke out in the United States, under which 9,800 banks went bankrupt. What is the concept of 9800 banks? According to China's laws, the paid-in registered capital of commercial banks is 50 million yuan, and the economic losses of the United States are self-evident.

The economy of the United States has been soaring all the way, and the economy of the United States is very prosperous and desirable due to the severity of foreigners. Then behind the boom lies a huge crisis, creating a huge bubble, and people's confidence can no longer support the bubble of the market.

However, that's not the worst of it. Banks are like dominoes, one after another, the Americans realize, and disaster begins. At that time, the Bank of America put a large amount of money into the market, and the large amount of money brought huge losses to the Bank of America, and the rumors about the bank failure in the market were rampant, and depositors went to the bank to withdraw money, and many commercial banks did not fall in the market, but in the process of depositors withdrawing money.

This panic began to spread like an epidemic. In 1930, 1,350 banks collapsed in the United States; In 1931, 2,300 banks collapsed in the United States; In 1932, 1,450 banks collapsed in the United States; In 1933, more than 4,000 banks collapsed in the United States. In March 1933, Roosevelt took office in the United States and announced the closure of the nation's banks.

It can be seen from the U.S. banking crisis that the banking industry is the core system of the entire economy, and the banking crisis is highly contagious and destructive. Once a bank failure occurs, if it is not handled well, it can cause a chain reaction, like dominoes.