How did the financial crisis affect China? What does Lehman Brothers do. Why is it so big of an impa

It was not the financial crisis that affected China, but the financial crisis that turned into an economic crisis, which affected China!

Lehman Brothers is the 3rd largest investment bank in the United States!

Lehman Brothers, the fourth-largest investment bank in the United States, has officially announced that it has filed for bankruptcy protection in court, and bankruptcy is a matter of time.

If the first hand had been made, then the systemic risk that would have avoided the bankruptcy of Lehman Brothers. Prior to the fall of Lehman Brothers, the Commonwealth** had defused a series of financial turmoil on a local scale by surviving troubled institutions such as Fannie Mae, Freddie Mac, and Bear Stearns.

Believing that these institutions were too big to fail, they used billions of dollars of taxpayer money to bail them out. But not with Lehman Brothers.

Ways to Prevent: China News Service, Beijing, 18 Sep (Xinhua) -- Experts: Prevent "Lehman virus" from "infecting" China through two major channels.

Lehman Brothers, the fourth-largest investment bank in the United States, filed for bankruptcy protection, making it the largest corporate bankruptcy in the country's history to date. With the Merrill Lynch's lightning change of ownership, American International Group (AIG) is in a predicament ...... financial difficultiesThe subprime mortgage crisis in the United States has entered a stage of deep development and triggered a global "financial tsunami", and China is naturally not immune.

Mei Xinyu said that the United States is one of China's second largest partners and major investment destinations, and it is also the world's largest financial market, and this crisis will inevitably create a sad and high-minded atmosphere among Chinese capital market participants.

What caused Lehman Brothers to go bankrupt? Will it affect my life?

Who are they? Bankruptcy before the ant can actually lead to an economic crisis!

Lehman Brothers bankruptcy is only a superficial phenomenon, the deeper reason is the emergence of the shortcomings of the U.S. economic system and the potential for huge risks, the company's bankruptcy is only 600 billion liabilities, which can be solved However, the subsequent bankruptcy of the corresponding enterprises may bring more than trillions of liabilities, the release of risks has just begun, and the financial turmoil affecting the world is unavoidable, the U.S. economic recession will inevitably lead to a decrease in demand, and the reduction in demand will inevitably affect China's export-oriented enterprises, The survival of export-oriented enterprises will inevitably be tested, and their bankruptcy will inevitably lead to unemployment. There are more chain reactions later, affecting your life is inevitable, just not now, there will be a time process, the above is purely a personal opinion, please be cautious friends.

Lehman Brothers is the fourth-largest investment bank in the United States.

A number of Chinese banks have bought Leqiaoshen's bonds, and the bankruptcy of Lehman Brothers will have different degrees of sensitivity or loss impact on China's multi-bank banks.

For you personally, you don't have much impression that the bankruptcy of Lehman itself would not have caused an economic crisis, but that its bankruptcy could reflect the major problems that have arisen in the United States on the financial issue.

They are investment banks, and they owe $610 billion in debt from bankruptcy, which has a huge impact and triggers a financial crisis.

Lehman itself has nothing to do with your letter, but the financial crisis it caused has something to do with you, because the modern economy is very dependent on finance, and the financial crisis affects the economy, and the economic crisis affects production and life. There is no way to sever this connection.

The whole world is affected by its financial tsunami, and the financial turmoil on Wall Street has reappeared, which is even more difficult to hit China.

In layman's terms, it applies to what you understand but it's not that simple, I've simplified it:

Let's start by telling you how the financial crisis came about

Under normal circumstances, banks have a lot of deposits, so bankers will invest to get returns, but the market competition is fierce, the projects with low risk and high returns are taken away by the big banks, and the small banks can only go to the high-risk projects (subprime loans), but because the investment is careless and simple, most of the small banks go bankrupt, which is the latter Many large banks will also be implicated because most of them have lent money to small banks, but the small banks have gone bankrupt and cannot pay the money. In this way, the dominoes brought down the big banks (like Lehman, but Lehman also invested in a lot of high-risk projects) or made them almost bankrupt.

How does the malpractice affect the U.S. economy:

Do you think, the bank has no money of its own, so can it lend you a business? There are no doors! In this way, many small and medium-sized enterprises in the United States have gone bankrupt because they could not borrow money, which led to the rupture of the capital chain. And large enterprises are also downsizing due to the shortage of capital chains in order to save their lives.

How to influence China (I'm talking about only one aspect here):

You also know that many Chinese companies export their products to the United States, but you think, many American companies have downsized, so can you have orders in China? Even if there are a few of them, can they talk to the same day as before? That must have been snatched away by China's big enterprises!

As a result, most of China's small businesses have gone bankrupt because of the sharp decline in export orders.

Can you understand buddy? I'm already very popular, haha, if I write my homework like this, the beast will definitely spray me to death, but if you still don't understand, ask again!

First of all, you ask the opposite, it is the financial crisis.

led to Lehman.

of bankruptcy. It was not his bankruptcy that led to the financial crisis.

I don't like to copy a bunch of things, let's put it simply.

The reason is the subprime mortgage crisis that is talked about every day on TV.

There are 3 types of loans, senior, intermediate, and subordinated.

Advanced, such as bank lending to Microsoft.

IBM is a company with strength and solvency.

Subordinate, such as lending to some small workshops, is not able to repay.

These individuals have their own selfish desires, and they are desperate to lend, in short, the bank will not be able to recover what they have lent to others.

Therefore, in the end, the subprime mortgage crisis is that the banks have run out of money, and the people have no savings, all of which have been lent out by the banks, and the crisis can be imagined. Housing and stocks followed suit.

Because there is no money, people want to save money, and if they don't buy things, the merchants can't sell things, and they can't sell them when they produce them.

For example, a cotton clothing company, because of the crisis, everyone does not want to buy a new one, so the cotton clothing company has a crisis, the crisis is interlocking, the cotton company provides fabrics, the cotton farmers, the design of clothing styles, and the logistics companies that transport materials in the middle, etc., all of which will be affected.

These companies in China, OEM companies, have been affected by the big blows, what they do is processing, sell abroad to earn foreign exchange, but now that people are in a foreign crisis, no one buys it, and of course you have no food. So you look at Jiangsu and Zhejiang now.

Those companies are going to fall in a big chunk. In the end, we still have no technology, what we do is only OEM processing, and whether we can sell it depends on the eyes of others.

The direct impact on us is that it is difficult to find a job, and we are often fired.

In general, the impact on China is not as great as that of Europe and the United States, because my financial system is not so complex, and there is very little integration with them, but there are still those indirect effects.

Lehman is the largest insurance company in the United States, and its collapse will make the market under-informed.

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