China s financial markets are facing those crises

Caused by excessive credit expansion, for example, credit cards can be overdrawn in large quantities, and no down payment is required to buy a house. This is controlled by China relatively well, and the minimum is 20%.

As a result, in terms of time, it will take at least 10 years to recover, such as the 1929 financial crisis and previous crises in the United States, which will take at least 10 years. The second is to endanger the real economy. For example, the impact on China is very great, the United States and Europe are China's first and second largest exporters, they have no money to buy, China's exports accounting for 1 3 percent of GDP will be greatly affected, a large number of export enterprises along the coast will go out of business, and a large number of workers will lose their jobs.

The domestic economy will be greatly affected.

In the troubled times, there is only **, in the disaster of the world financial crisis in history, it is accompanied by inflation, and everything is depreciated, such as oil, non-ferrous metals, agriculture, rubber, etc., only ** is rising steadily.

1.The financial crisis has spread around the world, and for China, the country's foreign exchange reserves have been partially lost, exports have been difficult, economic growth has slowed down, unemployment has increased, people's incomes have fallen, consumption has decreased, and the market has been depressed. For example, the Motor City of Detroit in the United States is already in a depression, and in severe cases, it will cause political instability.

Of course, "it will lead to a decrease in the purchasing power of many people", "because there are fewer people to buy things (or fewer people can afford to buy things), so that prices have to be **." However, the impact of different commodities is different, luxury goods such as automobiles will have a greater impact, daily necessities including household appliances will have a smaller impact, and food will have a smaller impact.

The fastest decline is of course in high-end consumer goods.

2.The financial crisis has mainly had an impact on various industries in China to a greater or lesser extent. The first is the foreign trade industry; This is followed by manufacturing (from high-end consumer goods to general consumer goods to food with diminishing impact), and then tertiary industries such as catering.

3.Compared with European countries (such as the Detroit Motor City in the United States, which is already very depressed), the impact of the financial crisis on China is not very large, because China's economy and the international economy are separated to a certain extent, China's renminbi implements strict management under the capital account, and the impact of international travel capital is not large, and now more than 70 banks in the United States tend to fail, China's financial system is running well, and the economy maintains a certain rate of growth. At the same time, the state is also through the expansion of fiscal and the reduction of the reserve ratio, 4 trillion yuan to stimulate domestic demand and other measures, and now the RMB exchange rate has been lowered, if the implementation of various macroeconomic measures is effective, for China will be able to pass about a year.