The global financial crisis is the direct fuse subprime
The global financial crisis is the direct fuse subprime mortgage crisis in the United States, and the U.S. subprime mortgage crisis is the essence of Wall Street financial institutions violated international financial field, the principle of prudence pricipal in “home ownership of their houses to the” American dream “, driven by no mbt footwear credit proof, to no fixed income sources have plenty of other liabilities buyers, and provide a lot of big money through financial derivatives, put these loans, and then pack sell layer formed a nearly complete financial chain: professional institutions provide subprime credit loan, investment Banks issuing financial derivatives, rating agencies provide credit rating safeguard, the insurance company for risk security guarantee, investment Banks, professional banking, insurance funds, enterprise annuity and other social capital is poured into, even higher in the 1:20 or 1:30 leverage greatly magnifies the subprime mortgage product the profitability and investment risk. In this process, the entire financial industry shrouded in a huge financial illusion: a global economy will continue among American economy will continue to boom, low interest rates, real estate prices will rise not only came, the subprime products will only high yield and won’t have high-risk, and if there is risk, and there will be others carried without may his turn. The mutual correlation, interdependence MBT USA and mutual rely on but who also not willing to also can’t risk financial chain itself is extremely fragile, once financial illusion burst, the whole chain will immediately its breaking, product risk, industry risk, industry risk even system risk will equipoised in overall economic also faces a difficult to resist also difficult to huge risks. And this is precisely the subprime crisis evolution processes a complete picture.
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