The Wall Street financial crisis was inflation or deflation

The financial crisis has nothing to do with inflation and deflation in general, but when you think about it, there is a little bit of relevance. First, the U.S. has been deregulated by a long-term low interest rate, a high degree of liberalism, and a regulatory policy that seeks market self-regulation. Housing prices have maintained rapid growth under the condition of low interest rates, and in the case of a certain inflation in the U.S. economy, the United States has adopted the means of raising interest rates to curb inflation to curb the rapid growth of goods.

Of course, such measures have achieved good results, the ** of commodities has begun to fall, and housing prices have also fallen. These would not have led to the subprime mortgage crisis, but the United States** neglected the management of the financial industry, so that almost all American banks, especially large investment banks, held a large number of non-performing subordinated loans, and these loans as collateral for the houses ** quickly fell back and became worthless, and the banks held each other's subordinated bonds, so that the banks had a large number of bad debts, and the liabilities could not be repaid, which eventually led to the outbreak ......of the crisisDeflation ensues......

LZ can compare the global financial crisis with the "Great Depression" of the 30s of the last century, and interesting results can be obtained.

We all know that the economic crisis caused by the Great Depression in the 30s made most people unemployed, and the products of the capitalists could not be sold.

Although the financial crisis was not caused by the real economy, it also exposed the abnormal development of the real economy in the United States, where people made too much use of financial leverage to consume in advance, and finally the financial and real economy collapsed, in fact, supply exceeded demand, that is, inflation.

It's not these two this time, and now it's the subprime mortgage crisis, which is caused by credit problems and financial regulatory loopholes, and there is no inflation and so on that has a big impact on the real economy!

This economic crisis.

It is caused by the tightening of Tongdan's frontal goods. There are also U.S. policy reasons.

Before this crisis, the United States had been prosperous for 20 years, and the United States had a bull market that lasted for nearly 10 years, and it should be common for a recession to occur at this time, but Hoover.

** The economic policies adopted at this time are very unusual.

First of all, he signed the 'Smut-Hawley Tariff Act' to raise tariffs to protect the industry and agriculture in the United States, and soon other countries retaliated against the United States by the same means, which led to the world's **.

The collapse of the system.

Second, at a time when the United States is experiencing the most severe deflation in history, the Federal Reserve.

It is also maintaining a policy of anti-inflation and economic austerity, i.e., keeping interest rates high. And at this time, Hoover even pushed Congress to pass a bill to raise the tax rate, and the increase in the tax rate was unprecedented. Many people know that raising interest rates and tax rates is the most effective means of cooling down when the economy is overheated, but Hoover doesn't seem to understand this at all, and his policies have thrown the US economy, which has been frozen in deflation, directly into the cold room.