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Anonymous users2024-02-09A financial crisis refers to a sharp, short-lived and super-cyclical deterioration of all or most of the financial indicators (such as short-term interest rates, monetary assets, real estate, land (**), commercial bankruptcies and financial institution failures) in a country or several countries and regions.
The subprime mortgage crisis in the United States refers to the fact that U.S. banking institutions lend to those buyers who have poor repayment ability, and the secondary mortgage here mainly refers to the borrower's insufficient repayment ability, resulting in the illusion of a housing boom, but in fact, there are more and more bubbles...
The subprime mortgage crisis in the United States was the cause of the current financial crisis.
The above is my personal simple understanding, if you want to understand the problem more thoroughly, you can read the views of some economic experts...
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Anonymous users2024-02-08Subprime Mortgage Crisis: The Trigger for the '08 Global Financial Crisis.
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Anonymous users2024-02-071.Causes of the subprime mortgage crisis:
As the U.S. housing market cools, especially short-term interest rates rise, subprime mortgage repayment rates have also risen sharply, and homebuyers' repayment burdens have 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 borrowers of large batches of loans not being able to repay the loans on time, and the bank repossessed the houses, but could not sell them, and suffered a large area of losses, triggering the subprime mortgage crisis.
2.Impact of the Subprime Mortgage Crisis:
Since the outbreak of the subprime mortgage crisis in August 2007, it has had a great impact on and damaged the international financial order, resulting in a strong credit tightening effect in the financial market and exposing the systemic financial risks accumulated in the international financial system for a long time. The financial crisis caused by the subprime mortgage crisis was the most serious financial crisis in the United States since the "Great Depression" in the 30s of the 20th century.
The subprime mortgage crisis, which originated in the United States, is spreading around the world, and the global financial system has been significantly affected, and the crisis has hit the real economy. China has also been affected by the subprime mortgage crisis.
Excessive innovation in financial instruments, distorted interests of credit rating agencies, and deregulation of monetary policy are the main causes of the subprime mortgage crisis in the United States. Although the response measures taken by the United States**, such as large capital injections, continuous interest rate cuts and direct intervention, have achieved certain results, they have not fundamentally solved the problem.
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Anonymous users2024-02-06In 2007, the subprime mortgage crisis broke out in the United States, Bear Stearns defected to JPMorgan Chase, and the Treasury took over the two houses, however, in the end, Lehman bankruptcy was not averted. Lehman's bankruptcy has plunged the whole world into a complete panic, and the financial crisis is coming!
It was the United States that was engaged in the tricks of financial speculators.
The financial crisis in the United States was triggered by the subprime mortgage crisis, that is, the people had no money, but they wanted them to buy a house, so the bank lent them money, but in the end it could not be paid, and the result was that the economy went wrong. As for affecting the whole world, you have to think that the national debt of the United States is hundreds of billions better a year, and the expenditure of the United States is greater than its income, but what about this gap? If the people who owe money to others can't afford to pay back the economy, then the money lent to the United States by the countries of the world will be wasted, so the world's economy is closely linked, and the crisis in the United States has expanded to the whole world because of financial derivatives and other channels.
In addition, banks are worried that enterprises will not be able to repay their loans, so they have strictly restricted the issuance of loans, so that it is difficult for enterprises to obtain enough funds to turn over, so that enterprises are struggling to survive, and they have closed down one after another in the case of difficulty in obtaining loans, so as to protect their own maximum interests.
How did the United States respond to the subprime mortgage crisis in 2007?
If you ask this question, then I think this should be caused by people, people's greed This is mainly the global financial turmoil caused by the subprime mortgage crisis, when the concept and quantity of using future money has exceeded the scope of bearing, collapse is an inevitability, every financial crisis is contained in the rapid development of the economy At the same time as the number of assets increases, it is also accompanied by the expansion through expansion, when the money in hand is increasing, but there are fewer and fewer things that can be bought. In fact, it is the depreciation of the real value of the currency >>>More