Essay About Subprime Crisis Problems And National High-Tech Bubble Burst

Inspiration Subprime Crisis
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First, the subprime crisis problems reflected the existence of derivative financial product regulation
1, no early to predict crises . Began in the U.S. subprime mortgage crisis ,
Like the previous financial crisis , even though some experts and regulators aware of which
There may be a security risk , but whether it will cause a crisis , will cause more than
Large degree of loss , when the crisis broke out in other related issues and there is no uniform
And a clear understanding of , and therefore only when a crisis occurs , the management really know
Road crisis , so hurry to take some emergency measures. In fact, since the United States
Since the national high-tech bubble burst , the U.S. economy entered the downturn phase , government
The government adopted a series of loose fiscal and monetary policies. Starting in 2001 ,
The Fed cut interest rates more than 20 times , from 715 % to 1% , and keep 1%
The loose monetary policy of low interest rates for two years [ 1 ] . These liberal political
Policy to stimulate the economy at the same time as the outbreak of the subprime crisis potential problems , however,
Unfortunately, only when a crisis occurs , people realized the policy was somewhat
Overdone.
2, the response was not as effective . After the outbreak of the subprime crisis , a great
Getting worse, not only to Bear Stearns , Citigroup and Merrill Lynch
Large U.S. financial institutions involved, but also the wave hit the United Kingdom, Japan ,
France, Germany and other developed countries , and even some of China s financial institutions have been
Subject to a certain degree of loss . Although the monetary authorities of countries are actively
Shadow to take response measures to inject liquidity , lower interest rates , the subprime crisis
There are still signs of ring for further development . Statistics show that the negative impulse
Strike has been extended to the U.S. consumer market, so that increases the risk of economic deterioration
Large . That is to say , the subprime crisis is far from stopping [ 2 ] . U.S. Government
Liquidity of financial institutions bailout , is short-term