The Cause、Impact and Inspiration of the U.S. Subprime Loan Crisis
|Keywords||Subprime loan crisis Financial Innovation Financial Supervision|
The U.S. subprime loan crisis from the beginning of February 2007 will be a cause for widespread concern, to August 2007 has been updated to sweeping across the global financial market turmoil. Many real estate financial institutions and hedge funds have filed for bankruptcy or cease to redemption, investment banks and commercial banks generally issued profit warnings, the world’s major stock market index went down while the developed economies in the financial markets generally lead to a loss of confidence in the credit crunch, The real economy has begun to be hit. The subprime loan crisis shocks in the spread and proliferation , it can be said that the world is a feeling of cold spell brought about by the the crisis.How the crisis occurred, what is the deep-seated reasons leading to the crisis? How is the crisis affecting the United States in turn affect the whole world?Through in-depth analysis on the cause of the crisis, the far-reaching implications on world economic growth : from the United States to Europe, Japan and other developed countries, from Singapore, Malaysia to India, China and other emerging market countries are all affected by the subprime loan crisis. Each country’s financial institutions, mortgage market, the stock market, as well as consumption, investment, trade and so on are all subject to the sub-loan crisis. Overall the impact of the crisis is impacting the U.S. economy, combating the global securities market, stimulator international financial risks, dragging trade development, suppression of financial deepening, against market confidence and increase cooperation difficult. With the storm continues to spread in 2008, the market is full of the world economic growth in the depth of concern.I believe that the impact of the crisis on China such a emerging market in this initial stage of financial deepening, not directly against the assets loss of financial institutions, but a development path and direction of the Lost. Crisis has brought us not only the profound lessons, while there are many useful inspiration. Hurricane of financial emergencies, torture monetary system, increased economic risks and challenges macroeconomic policy. Of the current financial innovation, we can’t stop because of the impact of the crisis but should be a lesson to strengthen the supervision and macro-control policies of the global coordination, and promote Chinese financial markets development.