Subprime crisis is also called subprime crisis, which is also translated into subprime crisis. It refers to a financial storm in the United States, which was caused by the bankruptcy of subprime mortgage institutions, the forced closure of investment funds and the violent shock of the stock market. Crisis leading to insufficient liquidity in major global financial markets. The reasons and effects are as follows:

Reason:

In order to promote economic growth, we should encourage people to spend more money.

The social distribution relationship is seriously unbalanced, and the income of the broad middle class is falling instead of rising.

The serious lack of supervision in the financial industry induces ordinary people to spend in advance and speculate in the market through borrowing. An important part of neoliberalism is deregulation, including financial supervision.

Impact: On the American economy: Many financial institutions in the United States won the bid in this crisis, and their subprime mortgage problems far exceeded people's expectations. The fundamentals of the American economy are strong, and there is no lack of motivation to continue to grow.

For the global economy: the bursting of the real estate bubble will continue to hinder the growth of production.

To China's economy: The subprime mortgage crisis mainly affects China's exports. China will face the dual pressures of slowing economic growth and severe employment situation. The subprime mortgage crisis will increase China's exchange rate risk and capital market risk.