Where did all that money go from the financial crisis?

Updated on Financial 2024-05-25
7 answers
  1. Anonymous users2024-02-11

    It's in the hands of financial investors.

  2. Anonymous users2024-02-10

    1) The impact of upstream capital in the international financial market. There are approximately $7 trillion in liquid international capital worldwide. Once international speculators find out which country or region is profitable, they will immediately impact the currency of that country or region through speculation in order to make huge profits in the short term.

    2) Improper foreign exchange policies in some Asian countries. In order to attract foreign investment, they have maintained a fixed exchange rate on the one hand, and expanded financial liberalization on the other, which has provided an opportunity for international speculators to take advantage of. For example, Thailand lifted the control of the capital market in 1992 before its own financial system was straightened out, allowing the flow of short-term funds to flow unimpeded, and providing conditions for foreign speculators to speculate on the Thai baht.

    3) In order to maintain a fixed exchange rate system, these countries have used their foreign exchange reserves to cover their deficits for a long time, leading to an increase in external debt.

    4) The structure of the external debt of these countries is irrational. In the case of a large amount of medium- and short-term debt, a country's currency depreciation is inevitable once the outflow of foreign capital exceeds the inflow of foreign capital, and the country's foreign exchange reserves are not enough to make up for the shortfall.

    The financial crisis evaporated its money.

  3. Anonymous users2024-02-09

    People who were detected in advance of the financial crisis were withdrawn from the region. And then it led to a money vacuum in that area. But don't think it's a foreigner just because you see the withdrawal.

    Sometimes it is possible for domestic people, countries, and foreign investors. So if you find that a financial crisis is imminent, the right thing to do is not to panic and try to get money out of the country through various means.

  4. Anonymous users2024-02-08

    When the financial crisis happened, the money was in the banks.

  5. Anonymous users2024-02-07

    Why does the financial crisis lead to a shortage of money, and where is the money concentrated? Today is a long time to see.

  6. Anonymous users2024-02-06

    The so-called BAI financial crisis.

    It refers to the use of goods du currency (or zhi

    Directly called virtual assets) investment in the crisis of the financial industry, such as investment, industry, and other specialized financial industries (the reason is that you search on the Internet yourself). Since they do not have actual possessions in their hands, and their assets themselves are inflated, their money can evaporate in a very short period of time, that is, they lose money.

    Then there's the so-called economic crisis, and that's the point. Do not confuse the concepts of economic crisis and financial crisis. As soon as the financial crisis breaks out, that is, the crisis of our investors comes, then it will affect the development of the real economy (manufacturing, agriculture, etc.), that is, it will cause an economic crisis.

    So the two of them are in an approximate causal relationship. Financial crises generally trigger economic crises.

    At this stage of the economic crisis, we are making less things, we are consuming less, and people are losing their jobs in large numbers. That is, the productivity has declined, and at this time, it is the real loss of money as you understand it.

  7. Anonymous users2024-02-05

    The shrinkage of money under the financial crisis is the shrinkage of financial assets, which is actually a problem of the return of the value of virtual assets. It is like the result of a sponge that has absorbed enough water to be squeezed or exposed to the sun. Give an original case that may inspire you.

    Two people sell baked cakes, each person sells 20 pieces a day (because the demand for the whole baked cakes is only 40), the price is one yuan, and the output value is 40 yuan per day. Later, the two discussed, bought and sold 100 to each other (A bought 100 from B, B bought 100 from A), and in the form of bookkeeping, ** remained unchanged, and the transaction volume became 240 yuan per day - the virtual economy was generated.

    If the price of the baked cake is 5 yuan, the trading volume is 1040 yuan per day, at this time, A and B will be the market baked cake ** to 2 yuan, some people heard that the baked cake is selling for 5 yuan 1, and when they see that the market baked cake is only 2 yuan, hurry up and buy it. -- Bubble economy is generated.

    If you can't make a pancake all at once, you buy a forward cake. A and B, on the one hand, increased their production of baked cakes (up to 100 or more per day), and on the other hand, they sold forward baked cakes, and also started to issue bonds for baked cakes, which were purchased by the purchasers with cash and mortgages. --Financing, financial intervention.

    Some people want to buy, and they have neither cash nor collateral, so A and B issue subordinated burnt bonds. and purchased insurance from an insurance agency. -- Subordinated bonds sowed the seeds of the subprime mortgage crisis.

    One day, I found that I couldn't eat the baked cakes I bought, and I wanted a place to store them, and they were moldy, so I quickly sold them, even if they were lower. --Bubble bursting.

    And so the financial crisis broke out.

    The pancake shop has laid off staff (as long as 40 pancakes a day is fine) - unemployed; Burnt cake bonds have become waste paper - subprime mortgage crisis.

    Mortgages (collateral is worthless) cannot be recovered, lending banks are in a liquidity crisis, insurance companies are facing bankruptcy, etc. --Financial crisis.

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