The subprime mortgage crisis in the United States refers to subprime.

The U.S. subprime crisis, also known as the subprime mortgage crisis, is also translated as the subprime debt crisis. It is a financial crisis caused by the bankruptcy of subprime mortgage lenders, the forced closure of investment funds, and the violent fluctuations in the stock market. .

The U.S. subprime mortgage crisis has caused an illiquidity crisis in major financial markets around the world. It began to gradually appear in the spring of 2006, and began to sweep through the world's major financial markets such as the United States, the European Union, and Japan in August 2007. The subprime mortgage crisis has become a hot issue internationally.

Extended information:

Causes of the U.S. subprime mortgage crisis

1. In order to promote economic growth, encourage people to eat more and consume more.

Liberal economic theory has always attached great importance to promoting production and economic development through consumption. Adam Smith said that "Consumption is the sole destination and purpose of all production." Schumpeter believed that the capitalist mode of production and consumption "derives from a high degree of secularization characterized by urban hedonistic life." That is to say, they believed that luxury consumption superficially promoted production.

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

In the past thirty years, there has been a very strange phenomenon in American society. On the one hand, American people consume in advance, and on the other hand, their income has been declining.

3. There is a serious lack of supervision in the financial industry, which induces ordinary people to consume in advance and speculate in the market through borrowing.

Baidu Encyclopedia-US Subprime Mortgage Crisis