The process and solution of the previous financial crisis

The earliest financial crisis was in Holland in the18th century. Due to the bubble in the tulip market, the prices of the whole tulip flower market and related industries and financial products (such as stocks) collapsed seriously. At that time, there was no such rich and mature economic theory to support it, so the market naturally formed a new equilibrium point after the price plummeted to a certain extent. (Now that there is a theory, it is actually done, when the market bottoms out. )

/kloc-The first worldwide economic crisis broke out in the middle of the 0/9th century (mainly in the United States and Europe), which was mainly due to the explosive growth of output after the industrial revolution, as well as inflation and market bubbles caused by a special economic prosperity for a period of time. The most serious impact of this crisis is the occurrence of workers' movements all over Europe, including the popularity of socialism in Europe, but countries have suppressed it through severe strikes. Then adjust labor relations one after another to ease contradictions. In addition, the development of new markets, especially the opening of China market, has found a new G-spot for the economic growth of these countries. In addition, due to the improvement of workers' conditions, the domestic consumer market began to prosper, which also led to the Pentium era of capitalism in the second half of the19th century.

The most famous "Great Depression" happened after the Pentium era, just after the First World War, starting from Wall Street in the United States. On the one hand, there is a serious economic bubble in the United States. In order to seek economic recovery after the war, Europe adopted severe trade protectionism and imposed heavy taxes on foreign goods, which led to the Great Depression in the international market and further damaged the economic entities of various countries (so trade protectionism certainly did more harm than good). There are two final solutions to this crisis. One is the American-style Roosevelt New Deal. The state began to strengthen economic intervention, carry out macro-control, vigorously promote infrastructure measures, set up the Federal Reserve to control the financial industry, crack down on speculation, restore industry to ensure employment, and so on. The other is the German road, and the whole army began to prepare for war. So World War II broke out.

Then, in 1970s, the international oil price soared due to the Gulf War, which led to the first recession of American and European economies after the golden development after World War II. However, South Korea, Hongkong, Taiwan Province Province, Singapore and other emerging Asian countries and regions seized the opportunity to attract foreign investment to develop manufacturing at low cost. Another effect of this crisis is that economists abandoned the Keynesianism of Roosevelt's New Deal and began to adopt new monetary and fiscal policies. This recession ended with the great growth after Clinton took office.

Then there was the Asian financial crisis, which was caused by the bubble accumulated after the development of Asia in the 1970s. Soros speculates on shorting the Thai baht, and the solution is to wait for the market to reach an equilibrium point.

Then there was the 200 1 internet bubble, because the internet concept stocks in the United States soared, which led to the bubble. After 9 1 1, Federal Reserve Chairman Alan Greenspan adopted an extremely loose monetary policy, which did not cause much recession in the American economy, but it did cause a serious consequence, that is, it laid the groundwork for today's subprime mortgage crisis.