How did the financial crisis reach our country?

Here's why.

It must be understood that for China, the United States is China's largest exporter. Products consumed in the United States are generally imported through China, then sold by merchants, and purchased and used by consumers.

2.What is the financial crisis, is like this, in order to promote consumption, American banks in order to promote consumption, LZ imagined, Americans only consume more, so they import more Chinese products. LZ will say, then the United States does not produce its own things and sell them to consumers.

But don't forget that some of the raw materials for the production of products are only available in China, so there is such a thing as importing. Then, in order to promote consumption, the United States asked banks to lower interest rates and let Chinese people borrow money to consume. It is equivalent to borrowing money to buy things first, and then paying it back regularly.

But the problem is, not all Americans can pay it back. Because there are still poor people among Americans. Banks don't let themselves lose.

Because the bank also knows that some people can't exchange money. So, the bank (Wall Street) made a bond and sold it to other banks and consumers. LZ: Don't be surprised, U.S. banks are private in the U.S., unlike in China they're state.

3.The result of some poor Americans not paying money is that the bankruptcy of some of the US banks that bought bonds and the other consumers who bought securities were lost, which is equivalent to buying a pile of useless blank paper with money. If you don't know anything about bonds, just ask your parents.

4.Finally, the United States has no money to spend, which leads to a decrease in China's exports, and the foreign exchange earned by China's own enterprises has decreased, which affects the efficiency of enterprises.

Now is the global economy, any local problems will affect our country, the main categories of foreign exchange and import and export, these two can bring a series of reactions.

Imports, exports, exchange rate fluctuations, to put it bluntly, the cost of life, industry.

It has mainly experienced two financial crises, one is the Asian financial crisis, and the other is the financial turmoil that spread from the United States to the world. A financial crisis refers to a crisis related to finance, that is, a crisis of financial assets, financial markets, or financial institutions, such as stock market crashes, financial institution failures, etc. In the above-mentioned cases, financial crises have occurred from time to time at home and abroad.

However, depending on the market and country, if the individual crisis is not handled in a timely and poor manner, it can easily turn into a systemic financial crisis. The global financial crisis triggered by the United States is a good example. Subprime mortgages are just a branch of the financial tree of the United States, and its rupture has not been dealt with in a timely manner, leading to the almost complete collapse of the entire tree, and the collapse of the entire tree has led to a global financial disaster.

1. The financial crisis is caused by the monopoly economy of the capitalist system and the private ownership of the national currency. For example, speculation on currencies and resources, and so on.

2. Excessive liberalization of private ownership will inevitably lead to hidden dangers and crises caused by financial crises. As long as there is a financial crisis in the capitalist system, it will not stop, it is just a matter of whether the cycle of time will appear sooner or later. The capitalist system not only breeds financial crises, but also has the potential to pass them on.

Such as waging wars, invading, economic blockades, economic interventions, and so on.

3. Because the highly privatized free ** system determines the unlimited monopoly expansion, it will inevitably lead to various crises. To resolve crises and hidden dangers, we must think from the perspective of the social system, so that the goal is to make the social system the balanced development of the interests of the majority of the people as the goal.

4. Oppose monopoly and stop monopoly. We should promptly balance and readjust the goals and direction of economic development, in the direction of benefiting the interests of the majority of the people who are more than 90 percent, and in the direction of unbalanced countries and regions, so as to practice common development and shared development. Only in this way can the problem be fundamentally solved.

The immediate cause of the storm in the U.S. subprime mortgage market is rising interest rates in the U.S. and the continued cooling of the housing market. Subprime mortgages are loans made by some lenders to borrowers with poor credit ratings and low incomes.

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.

In the five years leading up to 2006, the U.S. subprime mortgage market grew rapidly due to the continued boom in the U.S. housing market and the low level of U.S. interest rates in previous years.

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. At the same time, the continued cooling of the housing market has also made it difficult for home buyers to refinance their homes or mortgage homes. 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".

Why are so many subprime loans being lent out? There are several reasons for this. I'm just talking about it from bank executives.

In addition to the basic salary, the salaries of Western bank executives are also added to business bonuses and other funds, and through such loans, the bank's transaction volume will increase significantly, and the executives will receive more. Some time ago in the United States, when the president of a bank was forced to resign, he also got $100 billion! In this sense, it is caused by the selfishness of their executives who ignore the market.

To give you the most popular saying, it is caused by the subprime mortgage in the United States, and China is now following the cold and fever!

Subprime mortgages, there is a time in it, you also know that it is a loan from a person with a bad reputation, how can you get a loan if you have a bad reputation, the loan in the United States is mainly manifested in the property market, because they firmly believe that people with bad credit, if they can't afford to repay the loan, can get the house back! But oh my God, there are unforeseen circumstances, and the property market is also determined according to the market, just like a parabola, there are ups and downs, and when it falls, it becomes that people can't pay off the loan, and when they take back the house, the house is no longer worth anything. Those bonds that used to be issued in large quantities are now completely bad debts, leading to a serious financial crisis!

There's no way around it

A financial crisis, also known as a financial turmoil, refers to a sharp, short-lived, and super-cyclical deterioration of all or most of the financial indicators of a country or several countries and regions.

How did the financial crisis come about?

This was created by financial speculators represented by Wall Street in the United States. These financial speculators used a series of fraudulent tactics to control inflation and the labor index** in order to get the Federal Reserve to lower interest rates. In this way, the American people were happy and began to consume in a bubble on a large scale.

Such a bubble consumption is so exaggerated that it eventually bursts, and the pressure on the US people to repay their loans has increased significantly, which in turn has affected other countries (such as China's manufacturing exports have been greatly reduced, and there is serious overcapacity). In this way, the financial crisis broke out.

How exactly does this bubble consumption have an impact? Here's an example. Before the financial crisis, the United States** allowed consumers to mortgage their homes and apply for loans.

As a result, housing prices went crazy**, followed by prices**, and the subprime mortgage crisis was formed. And a large amount of bubble consumption is the international financial speculators charge a lot of fees from it, as long as they make a profit, they don't care about any financial crisis.

The subprime mortgage crisis roughly means that some people's bank credit is not so good, and the loans of these people are called subprime loans, and these loans are like secured loans, and if you can't afford to pay them back, then you can use what you buy to repay. In recent years, the United States has provided this kind of subprime loan for some people who cannot afford to buy a house, which must have played a very good role, allowing many people to buy a house. But at the same time, the overheating of real estate has made housing prices rise, and the poor have the confidence to see the houses in their hands climb layer by layer, and they dare to consume to buy some things that they couldn't afford before.

In order to curb the overheating of the economy and inflation, the bank raised the interest rate, which made some people who speculated in real estate withdraw their money, and the real estate became cold, and the poor could not afford to repay the loan, on the other hand, even if the bank repossessed the borrower's house, it would also suffer a lot of losses, because the value of the loan was no longer worth when it was originally borrowed.

The subordinated loans that were originally in the hands of the bank with risk were spent by the bank to find a risk assessment agency to get a AAA highest credit rating, then these are risky"Money"It turned into a ** and was sold to investors, of course, many of these investors belonged to the national bank to buy government bonds, so many countries were also affected.

How did the financial crisis come about?

It doesn't matter how it came about, the important thing is that it's an earth-shattering conspiracy! Does the financial crisis have anything to do with the end of the world? The financial crisis is an excuse, it is **, where does a lot of money go?

Let's build Noah's Ark! Started working on the back road of humanity, Michael. Jackson's death is related to the end of the world, ** don't want more people to know the truth, so Michael.

Jackson died because he wanted to make the truth public. Just before his most recent concert, the heavens were going to be like this, and the fate was decided.