How did the financial crisis happen?

A financial crisis refers to a financial-related crisis, that is, a crisis in 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, resulting in the almost complete collapse of the entire tree, which in turn leads to a global financial catastrophe. Subprime mortgage lenders are often forced to pay higher interest rates and adhere to stricter repayment methods than the more favorable interest rates and repayment methods available to mortgage lenders with better credit terms.

This natural problem has not been truly implemented due to the impact of loose credit, active financial innovation, real estate, and the ** market in the United States over the past few years. In this way, the repayment risk of subprime mortgages has the potential to become a reality. In the process, some financial institutions in the United States, for their own benefit, connived at the excessive expansion of subprime mortgages and the scale of their related loan packaging and securitization, so that the scale of subprime mortgage loan defaults that occurred under certain conditions increased to the extent of triggering a crisis.

The financial crisis was caused by the subprime mortgage crisis. The subprime mortgage crisis occurred when the credit environment changed, and in particular housing prices stopped**. Why?

As you know, it is easy for subprime mortgage lenders to have poor credit status, or lack sufficient proof of income, or have other debts, and cannot repay their mortgages or default. However, in the case of a loose credit environment or housing prices, and the lenders cannot recover the loan due to the lender's default, they can also refinance, or simply take back the mortgaged house and sell it again, without losing money and making money. However, when the credit environment changes, especially when housing prices fall, it is not easy to refinance, or to repossess the mortgaged house and sell it, or it is impossible to do so, or it is a loss.

Crises arise when such events occur on a larger scale and in a concentrated manner. The financial crisis was caused by the subprime mortgage crisis.

This financial crisis was caused by the subprime mortgage crisis.

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?

How did the financial crisis come about?

How did the financial crisis come about?

The law is that every few decades there is bound to be an economic crisis, and the facts of history have proven this.

False figures in the financial industry and inadequate regulation are the number one reason.