The causes of the 2008 financial crisis

First, the causes of the 2008 financial crisis

The subprime mortgage crisis led to the economic crisis. Short-term interest rates, monetary assets, securities, real estate, land (price) and the international financial crisis in several countries have led to the global economic recession. Optimism estimates that it will take at least two to three years to recover. I just got back from America. Many companies in the United States have frozen recruitment due to shrinking business, and Boeing will further lay off employees. As China's largest trading partner, the weakness of the real economy in the United States directly leads to the grim situation faced by China's export enterprises, and the industries that bear the brunt of the impact are finance, securities investment, international trade, real estate and automobiles. This is an important time for college graduates to find jobs. It is difficult to predict the impact of the financial crisis on the employment of college students, but at present, it can be preliminarily judged that with the increasing spread of the impact of the financial crisis, first, the business of multinational companies and outsourcing companies will shrink, which will reduce the number of employees and freeze recruitment; Secondly, domestic manufacturing and export-oriented enterprises that provide spare parts, raw materials and semi-finished products for foreign industries will also be affected; Of course, it will affect downstream raw materials and energy industries. The introduction of government policies will meet the needs of the construction industry, thus promoting the recovery of the raw materials and energy industries. However, this effect has a lag, so college students who are looking for a job may not feel the effect of the policy. In 2009, more than 6 million college graduates needed employment, and the employment situation was not optimistic. The financial profession is greatly affected, because the business of enterprises is shrinking, firstly, the demand for financial managers is reduced, and secondly, the demand for technicians is reduced. Secondly, professions such as architecture, energy, machinery and IT will be affected.

2. What caused the financial crisis in 2008?

The financial crisis in 2008 was mainly caused by the subprime mortgage crisis in the United States. Initially, the affected companies were limited to those directly involved in housing construction and subprime loans, such as Northern Rock Bank and National Financial Services Corporation.

Some financial institutions engaged in mortgage securitization, such as Bear Stearns, have become victims. In July 2008 1 1, the largest company in America went bankrupt.

Due to the continuous decline in house prices and the rising foreclosure rate, the assets of IndyMac Bank were seized by federal agents after being crushed by the pressure of credit crunch.

On that day, the financial market fell sharply because investors doubted whether the government would try to save the mortgage institutions Fannie Mae and Freddie Mac. September 7, 2008, late summer. Although the federal government took over Fannie Mae and Freddie Mac, the crisis continued to intensify.

Then, the crisis began to affect ordinary credit unrelated to real estate, and then affected large financial institutions not directly related to mortgage loans.

Most of the assets owned by these institutions are obtained from the income related to housing mortgage loans. These securities with credit loans as the main target, or credit derivatives, were originally used to protect these financial institutions from bankruptcy risks.

However, due to the subprime mortgage crisis, the number of members affected by these credit derivatives has increased, including Lehman Brothers, American International Group, Merrill Lynch and HBOS. Other companies began to face pressure, including Washington Mutual, the largest deposit and loan company in the United States, and affected Morgan Stanley and Goldman Sachs.

Extended data

Since the subprime mortgage crisis broke out in August 2007, it has caused great impact and destruction on the international financial order, produced a strong credit crunch effect in the financial market, and exposed the systematic financial risks accumulated in the international financial system for a long time.

The financial crisis triggered by the subprime mortgage crisis is the most serious financial crisis in the United States since the Great Depression in the 1930s. The subprime mortgage crisis, which originated in the United States, is spreading around the world, and the global financial system has been greatly impacted, and the crisis has hit the real economy hard. China has also been affected by the subprime mortgage crisis.

Excessive innovation of financial instruments, distorted interests of credit rating agencies and relaxed supervision of monetary policy are the main reasons leading to the subprime mortgage crisis in the United States. The measures taken by the American government, such as massive capital injection, continuous interest rate cuts and direct intervention, have achieved some results, but they have not fundamentally solved the problem.

The enlightenment from this is that financial regulation and control policies must conform to the economic situation and the law of periodic fluctuations; On the basis of strengthening financial supervision and perfecting risk prevention mechanism, promote the innovation of financial products and their systems; We should seize the favorable opportunity to encourage overseas asset mergers and acquisitions, optimize the structure of overseas assets, and spread the risks of overseas assets.