May I ask why there is a financial crisis?

The direct causes of the US subprime mortgage market storm are: the rising interest rate in the United States and the continuous cooling of the housing market. Subprime mortgage refers to loans provided by some lending institutions to borrowers with poor credit and low income.

the American subprime mortgage market usually adopts a combination of fixed interest rate and floating interest rate, that is, buyers repay their loans at fixed interest rate in the first few years after buying a house, and then repay their loans at floating interest rate.

in the five years before 26, due to the continuous prosperity of the housing market in the United States and the low interest rate in previous years, the subprime mortgage market in the United States developed rapidly.

With the cooling of American housing market, especially the increase of short-term interest rate, the repayment interest rate of sub-prime mortgage has also risen sharply, and the repayment burden of buyers has greatly increased. At the same time, the continuous cooling of the housing market also makes it difficult for buyers to sell their houses or refinance through mortgaged houses. This situation directly leads to a large number of borrowers with subprime mortgages failing to repay their loans on time, which in turn leads to "subprime mortgage crisis".

why are there so many subprime loans? There are several reasons. I'll just talk about it from the bank executives. In addition to the basic salary, the salaries of executives in western banks are supplemented with business bonuses and other funds. Through such loans, the transaction volume of banks will increase significantly, so executives will get more. Some time ago, when the president of a bank in the United States was forced to resign, he also got 1 billion dollars! At this level, it is their executives who ignore the market and are selfish.

to give you the most popular saying, it is caused by the subprime mortgage in the United States, and now China has a fever with a cold!

There was a sub-prime loan, and you know it was a loan from a person with a bad reputation. How can you get a loan with a bad reputation?

The loan from the United States is mainly in the property market, because they firmly believe that people with a bad reputation can get their house back if they can't afford the loan! But that day, there were unexpected events, and the property market was also determined according to the market. Just like a parabola, there were ups and downs, and when they fell, they became people who couldn't afford the loan. When they took back their house, the house was worthless. Those bonds that were issued in large amounts in the past are now completely bad debts, leading to a serious financial crisis! There's nothing I can do about it,