Why is there a financial crisis?

The direct cause of the US subprime mortgage market storm is that the US interest rate rises and the housing market continues to cool down. 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 a fixed interest rate in the first few years after buying a house, and then at a floating interest rate.

In the five years before 2006, due to the continuous prosperity of the US housing market and the low interest rates in previous years, the US subprime mortgage market developed rapidly.

With the cooling of American housing market, especially the increase of short-term interest rate, the repayment rate of subprime 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 mortgage loans can not repay on time, which in turn leads to "subprime mortgage crisis".

Why are there so many subprime loans? There are several reasons. I'll talk about it from the bank executives. In addition to the basic salary, the salaries of executives in western banks are supplemented by business bonuses and other funds. Through this kind of loan, the transaction volume of the bank will increase greatly, so the executives will get more. Some time ago, when the president of a bank in the United States was forced to resign, he also got $654.38+000 billion! At this level, it is their executives who ignore the market and are selfish.

Give you the most popular saying, that is, the subprime mortgage in the United States, and now China has a cold and a fever!

Subprime loan, there is a kind of subprime loan, as you know, borrowed from a person with a bad reputation. How to get a loan with a bad reputation?

American loans are mainly manifested in the property market, because they firmly believe that people with bad reputation can get their houses back if they can't afford the loans! But on that day, something unexpected happened, and the property market was also determined according to the market. Just like a parabola, there are ups and downs, and when it falls, it becomes a person who can't afford to repay the loan. When they took back the house, it was worthless. Those bonds that were issued on a large scale in the past are now completely bad debts, leading to a serious financial crisis! There is nothing I can do about it,