The global financial crisis of 2007-2009, also known as world financial crisis, subprime mortgage crisis and credit crisis, was named financial tsunami and Wall Street tsunami in 2008, and began to emerge on August 9, 2007. Since the subprime mortgage crisis broke out, investors began to lose confidence in the value of mortgage-backed securities, which triggered a liquidity crisis. Even if many central banks injected huge amounts of money into the financial market many times, they could not stop the outbreak of this financial crisis. Until September 9, 2008, the financial crisis began to get out of control, leading to the closure or takeover of many large financial institutions by the government.

Basic characteristics of global financial crisis

The sharp deterioration of all or most financial indicators in the financial sector has affected the stability and development of the relevant countries or regions and even the world economy.

Mainly manifested in:

1. The stock market plummeted. This is one of the main signs of the international financial crisis.

2. Capital flight. This is another major sign of the international financial crisis.

3. The normal bank credit relationship was destroyed, which was accompanied by bank runs, money shortage and a large number of financial institutions closed down.

4. The official reserves have been greatly reduced, the currency has been devalued, and inflation has occurred.

5. It is difficult to pay off debts.