What caused the financial microcomputer in the United States this time? How could even the banks on

In fact, it is a domino effect, the process of this effect is very complicated, simply put, for example, I will be worth $100 of an apple to the bank loan $1000, this is of course a mistake, but in many times this mistake is not easy to see, for example, last year when many people thought that the housing market would continue to go crazy, this year there are still many people who think so.

Originally, if it was just this $900 shortfall, it wouldn't be terrible, but the terrible thing was that the bank made the $1,000 loan into a bond issuance (you can think of it as a kind of **).

Actually, if it's just a simple bond, it's not a big problem, but the problem is that a guy named Terry bought this kind of bond that was actually only worth $100, and then used this bond that was actually only worth $100 as collateral and borrowed $1,000, you know, that is, how much does this $100 thing become now? $2000.

Well, there's a company called Lehman Brothers that made those loans again as bonds, and then another company called Fang Limei borrowed a thousand dollars with those bonds.

Gentlemen, now this apple is worth 4,000 dollars, in fact I have a way to make it a hundred thousand dollars, you see, in such a simple instant, my 100 dollar apple becomes a hundred thousand dollars, it's like a huge house built on a matchstick, on the surface it looks brilliant, but at the end of the day, it is still built on a matchstick.

This kind of loan is called a subprime mortgage, and this kind of bond is called a subprime debt, and this is the root of the subprime mortgage crisis and the subprime debt crisis.

Real estate development in the United States is overheated, housing sales and housing ** are overheated, enterprises are starting construction in large numbers, and China Construction Bank is issuing a large number of loans for the construction and purchase of houses.

Due to the large number of loans without sufficient collateral, when the house price is **, enterprises and individuals do not repay, the bank will have a large number of bad debts. At the same time, because banks lend heavily and need capital, they sell their loans as derivatives called 'subordinated debt' to investment banks and other investors (including Chinese banks). Once a bank goes bankrupt, it involves the whole body, and a large bank in distress involves many of the world's largest banks.

The United States is already in a mess, and even Chinese banks have broken the news that they will lose hundreds of millions of dollars, and the disaster situation in the United States is naturally much more serious.

The 3rd floor is nice and easy to understand.

Well, subprime mortgages.

The first thing you need to know is that the bank is the heart of finance, and the big business keeps the money in the bank, and then the bank lends the money to the new enterprise for them to use, and when the new enterprise succeeds, it will exchange the borrowed money back to the bank, and then the new enterprise becomes a big business, and so on.

If a bank in the United States fails, there will be many companies that will lose money, because the money of the enterprise is in the bank, and the bank of the United States is privately owned, and it does not want to be bailed out and controlled by the central bank, that is, if the bank fails, the money stored in the bank will become waste paper.

When a bank fails, many companies will suffer, and the losses will spread to other banks, and other banks will spread to other companies, spreading the financial crisis to the United States.

The United States is an economic power, he has a financial crisis, and his best partners, such as Europe, Japan, and China, will also suffer, and then these countries will suffer from other countries, and it will become a world financial turmoil.

This is because most of the banks in the United States and other foreign countries are privately owned. If one of the banks (unlike the Bank of China, which is state-owned) fails, there will be a second and three follow-ups, because the United States will not bail out. Then there will be a financial turmoil on Wall Street.

The Wall Street financial turmoil has caused a global financial storm because of the internationalization of the US dollar.

Because the failure of U.S. banks is a systemically important bank, such bank failures will cause systemic risk in the financial system, forming a domino effect that spreads to other U.S. banks, and at the same time, the globalization of the economy and finance amplifies the butterfly effect and leads to a global financial crisis.