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Anonymous users2024-02-06A financial crisis refers to a crisis of financial assets, financial institutions, and financial markets, often accompanied by a large number of business failures, rising unemployment, general economic depression in society, and sometimes even social unrest or national political turmoil.
Systemic financial crises are those that affect the entire financial system and even the entire economic system, such as the financial crisis that triggered the Great Depression in the West in 1930, or the financial crisis that erupted on September 15, 2008 and triggered the global economic crisis.
1. The U.S. financial crisis.
What started as a Wall Street storm caused by the subprime mortgage crisis in the United States has evolved into a global financial crisis. The rapid development of this process, the sheer number of it, and the enormous impact of it can be said that people did not expect it. Broadly speaking, it can be divided into three phases:
The first is the debt crisis, which is caused by the inability of borrowers to repay principal and interest on time.
The second stage is the liquidity crisis. As a result of the debt crisis, some of these financial institutions have not been able to have sufficient liquidity in a timely manner to meet the creditors' demand for liquidation. The third stage is the credit crisis.
That is, people are suspicious of financial activities based on credit, which creates such a crisis.
2. Hong Kong financial crisis.
At the beginning of Hong Kong's return to China in 1997, the Asian financial crisis broke out. From mid-July to August 1998, international financial speculators sniped at the Hong Kong dollar three times, acting simultaneously in the foreign exchange, ** and futures markets. They use financial means, using 3-month or 6-month Hong Kong dollar contracts, and then quickly short selling, causing the Hong Kong dollar interest rate to rise sharply, the Hang Seng Index, and make huge profits.
In the face of the rampant attack of international financial speculators, the Hong Kong Special Administrative Region (HKSAR**) decided to fight back. In August 1998, the Hong Kong Monetary Authority (HKMA) used foreign exchange to invest a huge amount of money in the market and prepare to compete with each other. The 28th is the settlement day of the Hang Seng ** index in Hong Kong ** in August, and the SAR ** broke out with speculators.
The SAR withstood the unprecedented selling pressure of international financial speculators, resolutely bought all of them, independently supported the pallet, and finally saved the market, effectively defended the linked exchange rate system pegged to the US dollar and ensured Hong Kong's economic security and stability.
Hong Kong's financial defense is a contest of economic strength. On the eve of the outbreak of the defense war, Hong Kong not only had its own foreign exchange reserves of US$82 billion, but also had foreign exchange reserves of US$128 billion behind it, which together surpassed Japan's US$208 billion, ranking first in the world that year. As at the end of December 1997, Hong Kong's foreign exchange reserves stood at US$92.8 billion, the third largest in the world, after Japan and Chinese mainland.
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Anonymous users2024-02-05Students of the University of Economics and Business, right?
Financial crisis is pronounced as financial crisis. >>>More
The U.S. economy is currently in the midst of a full-blown financial crisis, which has led to many banks on the verge of collapse due to losses. The banking industry is generally more concerned with balancing its balance sheets, leading to a borrowing crunch or even a drying up of borrowing, the inevitable consequence of which is that the US economy falls into recession. Now that we are entering a recession, the United States** is taking steps to inject capital into the banks and hopefully develop effective policies to end the financial crisis. >>>More
First, the commodity ** will decline. As the demand decreases, all kinds of commodities will decline, don't worry if you want to buy a house, some people estimate that domestic houses will fall by 50% in the next one to three years or so. >>>More
The essence of the financial crisis is overdraft consumption, overdraft credit caused by the demand decrease, and spread throughout the economy, this economic cycle fluctuations are inevitable, generally there is a small crisis in a few years, and a major crisis in decades. >>>More
Seek the impact of e-commerce on international ** Literature review.