High score for financial market analysis since the 2008 economic crisis 50

Hello: China's economy has several hot spots, or several industries with the most lucrative profits and the greatest contribution to GDP growth: 1. Financial markets (including **, bonds, property market, etc.) 2. Infrastructure (including highways, etc.) 3. Industry (China is the world's largest manufacturing exporter) 4. Energy (oil, natural gas, coal, etc.).

As for the comparison of the financial market with other industries, in fact, it is only necessary to compare it with the other three hot spots. The first is the recent situation in the financial markets – which is relatively volatile. The Shanghai Composite Index is hovering around 2,800 points, and investors are seriously bearish.

Infrastructure construction is the only way for China to expand domestic demand and stimulate economic growth at all times, and there has been little change. Industry is considered to be the most depressed industry, due to the impact of the financial crisis, China's industrialists are operating poorly, and a large number of factories along the coast have closed down, but in recent days, with the strengthening of the economic recovery trend, there has been a certain recovery. The energy industry has been in high spirits recently, due to the financial crisis, the international energy **substantially**, Chinese companies are seizing this opportunity to buy a large number of foreign energy companies and buy energy (such as PetroChina bought $50 billion of natural gas in Australia some time ago).

The amount of advertising in the financial industry has not decreased, and banks, insurance, and ** are all promoting on a large scale. The main reason is that these financial institutions need a large amount of money to buy cheap foreign assets and invest abroad when the financial crisis bottoms out and the economy is about to recover. The need for a large amount of credit for the recovery of the domestic economy is also an important reason.

It's so high...

Is there one? I think the advertisements of insurance and banks are desperately fighting, and it seems that there are a little less people in the financial industry who have money and have nothing to say about high value-added industries.

Financial crisisThe financial crisis is the rapid growth of the means of production, but the circulation of banknotes is too small to make industrial products circulate in the society, resulting in a backlog of goods, the rupture of the capital chain, a vicious circle, the formation of a domino effect, the emergence of a financial crisis, the crisis in 2008 also happened like this.

Definitions

A financial crisis is a crisis in the financial sector. Since the liquidity of financial assets is very strong, the international nature of finance is very strong. The trigger for a financial crisis can be financial products, markets, institutions, etc., in any country.

The financial crisis is characterized by a relatively large depreciation of the currency value of the entire region, a relatively large reduction in the total economic volume and economic scale, and a blow to economic growth, often accompanied by a large number of business closures, an increase in unemployment, a general economic depression in society, and sometimes even social unrest or national political turmoil.

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.

The main reasons are as follows:

1. Over-indebtedness.

High levels of debt that have continued to accumulate for decades have led to more in the private sector than in the public sector. As the famous economist Friedrich Hayek described, debt can drive a constant cycle of overinvestment. This is where the real estate bubbles in Ireland and Western Chapanga came from.

Debt can also drive up existing assets** and**: the UK residential market over the past few decades is a prime example. When the times are good, the ever-increasing leverage will make the hidden questions seem to cease to exist.

In fact, at a time when Americans are experiencing stagnant or stagnation in real wages, subprime loans give them an illusory sense of increasing wealth. But in the post-crisis economic downturn, accumulated debt acts as a powerful deterrent, as overleveraged businesses and consumers reduce investment and consumption to repay loans.

2. The banking industry has insufficient risk control.

The main sticking point of the financial crisis was, first of all, the inadequate risk control in the banking sector, which allowed many loans to flood the financial system and dragged down the entire banking system.

The second is the covert manipulation of ** and the allocation of resources by a small number of speculators, which distorts the market principle of free capitalist competition to the benefit of a small group of people. Once the loopholes that exist in capitalism are exploited, they become a big problem.

3. Economic fragility brings political fragility.

The global financial crisis triggered by the subprime mortgage crisis has brought profound disasters to the economies of various countries, directly leading to higher unemployment, increased poverty, and reduced social stability and security.

But in the face of this financial turmoil, emerging economies, especially the BRICS, have shown great immunity. The main reason is that these countries have put forward counter-cyclical macroeconomic control policies based on stimulating domestic demand growth, which have effectively alleviated the volatility of economic activities.

Why: Excessive borrowing under the lax signature tolerance standard is one of the hallmarks of the U.S. mortgage bubble. The overflow of credit has led to a large number of subprime mortgages (subprime loans), which investors believe will be mitigated by assetization.

The damage caused by the failed assetization program swept through the housing market and its businesses, which in turn triggered a subprime housing credit crisis. As a result of the crisis, a larger number of banks were sold off in the market. These overabundance of houses have caused a large number of surrounding houses**, making them vulnerable to repossession and auction by the courts or to be abandoned.

This result laid the groundwork for the financial crisis that followed.

Process: Affected companies are limited to those companies that are directly involved in the housing and subprime business, such as Northern Rock Bank and National Financial Services. Some financial institutions engaged in mortgage**, such as Bear Stearns, have fallen victims.

On July 11, 2008, the nation's largest mortgage company collapsed.

Indymac Bank's assets were seized by federal agents after they were crushed by the pressure of tight credit, due to the declining home** and the rising rate of home foreclosures. On the day, financial markets were sharply aware, as investors wondered if they would try to bail out mortgage lenders Fannie Mae and Freddie Mac.

On September 7, 2008, late summer, the crisis continued to intensify, although the federal ** took over Fannie Mae and Freddie Mac.

Then, the crisis began to affect general credit that had nothing to do with real estate, and by extension, large financial institutions that had no direct relationship with mortgages. Most of the assets owned by these institutions are derived from the proceeds associated with the mortgage.

For these credit loans, or credit derivatives, were originally used to ensure that these financial institutions were protected from the risk of failure. However, the subprime mortgage crisis has led to an increase in the number of members hit by these credit derivatives, including Lehman Brothers, AIG, Merrill Lynch** and HBOS.

Other companies are starting to come under pressure, including Washington Mutual, the largest deposit-making and lending company in the United States, and major investment banks Morgan Stanley and Goldman Sachs**.