How did the 2008 financial crisis come about

This is a complex academic question that can be addressed in the following ways:

1. From a geopolitical point of view, in the bush era, the defeat of the war seriously dragged down the British and American economies, and the US dollar lost its global monetary hegemony.

Second, from the perspective of the monetary system, the bursting of the Internet bubble has led to a serious reduction in market interest rates by Greenspan, which has led to serious inflation in the global monetary system dominated by the US dollar and the growth of speculation (excessive money supply).

Third, from the perspective of micro accounting, the calculation and valuation of current assets by the US accounting standards are too high, and the bubble bursts when the risk comes.

Fourth, from an ideological point of view, the new economic liberalism in the United States advocates overdraft consumption has caused the United States to owe too much debt, not pay its income, become insolvent, and produce a credit crisis.

These four reasons go hand in hand.

Something is wrong with the real estate loan market in the United States.

Many companies outsource their personal real estate loans to brokers who provide false and substandard credit information in order to earn commissions, only to have borrowers unable to repay their loans.

The bank has packaged the loan to the investor, the investor has changed hands, and finally through derivatives to get the end the investor has no idea what is invested. Now it's a pile of waste paper.

These investors went bankrupt and couldn't pay off the money they owed to the bank. There is a big crisis in the financial industry.

The collapse of Lehman Corporation in the United States.

Subprime loans in the United States.

Financial crisisThe whole process:

From January to May 2008, more and more financial institutions were involved, and the United States was in a huge crisis. In mid-January 2008, Citigroup.

and Merrill Lynch**, JPMorgan Chase.

Swiss banks suffered heavy losses.

The first victim was Bear Stearns, which is widely known in China, and was paid 100 million US dollars by JPMorgan Chase due to insufficient liquidity and asset losses.

** Acquisition. Former Chinese partner CITIC**.

Hurriedly put aside the relationship.

Since July 2008, the crisis has deteriorated into a global problem. It's no longer just a marketplace.

Many non-dollar currencies began to depreciate sharply, and panic spread.

In mid-September 2008, Lehman Brothers.

Filing for bankruptcy protection, Barclays Bank acquired Lehman Brothers' investment bank in the North American market for a low price of 100 million US dollars.

and capital markets; US insurance giant AIG is in trouble; Merrill Lynch was acquired by Bank of America for $50.3 billion. At this stage, the subprime mortgage crisis.

It turned into a global financial crisis, with Europe being the most affected.

Historical Context. Initially, the affected companies were limited to those directly involved in housing construction and subprime loans, such as Northern Rock Bank and National Financial Services. Some financial institutions engaged in mortgage**, such as Bear Stearns, have fallen victims.

On July 11, 2008, the nation's largest mortgage company collapsed. Indymac Bank's assets were seized by federal agents after they were crushed by the pressure of tight credit, due to the declining home** and the rising rate of home foreclosures.

On the day, financial markets were sharply aware, as investors wondered if they would try to bail out mortgage lenders Fannie Mae and Freddie Mac. On September 7, 2008, late summer, the crisis continued to intensify, although the federal ** took over Fannie Mae and Freddie Mac.

The financial crisis began in 2007, and it wasn't until 2008 that the impact of China became apparent:

On February 13, 2007, New Century Finance issued a profit warning for the fourth quarter of 2006.

On August 2, the German Industrial Bank announced a profit warning, and later estimated a loss of 8.2 billion euros, due to the huge losses caused by its 12.7 billion euro "Rhineland Funding" and the bank's own small participation in the US real estate subprime mortgage market. The Bundesbank convened the nation's interbank to discuss a basket plan to save the German Industrial Bank.

On August 8, Bear Stearns, the fifth-largest investment bank in the United States, announced the collapse of two of its **, also due to the subprime mortgage storm.

On August 9, BNP Paribas, France's largest bank, announced that it would freeze its three **, also suffering huge losses due to its investment in U.S. subprime mortgage bonds. This move led to a heavy setback in Europe.

Financial crisis refers to the crisis of financial assets, financial institutions, and financial markets, which is manifested in the substantial collapse of financial assets or the failure or verge of failure of financial institutions, or the failure of a financial market, such as the bond market.

A financial crisis is a crisis in the financial sector. Since the liquidity of financial assets is very strong, the international nature of finance is very strong. The trigger for a financial crisis can be financial products, markets, institutions, etc., in any country.

Systemic financial crises refer to those crises that affect the entire financial system and even the entire economic system, such as the financial crisis that triggered the Great Depression in the West in 1930.

References Encyclopedia Global Financial Crisis.