2008 financial crisis

2008 financial crisis: Jianxingjianjin global economic stagflation Second loan crisis in the U.S. economy is slowing down the fuse, and its follow-up impact of the deteriorating and gradually spread to the world economy. In 2007 the world economy for the fourth consecutive year of rapid growth, there have been signs of adjustment. At the same time, the United States, and the vast number of developing countries in the euro zone's CPI growth rate has exceeded the central bank set the goal of control. Slowdown in economic growth and inflation pressures at the same time, threatening the world economy, global economic stagnation has been Jianxingjianjin.
The world's major countries stagflation of the early symptoms to death
Since 2007, economic growth in major developed countries began to "slow down", the global rise in the level of inflation in most countries of the world's major countries have been early signs of economic stagnation The United States as the world's largest economies, the world's locomotive of economic development. However, in 2007 less than satisfactory performance of the U.S. economy, sub-loan crisis broke out, more difficult. To reduce the rate of economic growth, rising inflation, the rise in unemployment, all show the U.S. economy has been growing from the stagnation of the past. Former Federal Reserve Chairman Alan Greenspan said "stagflation in the U.S. economy has not yet, but already there are early signs appear." The data from the euro zone, although in 2007 the euro-zone GDP grew by 2.6 percent, slightly lower than the previous year's 2.8 percent, but the large fluctuations in the economy as a whole, in the second quarter increased by only 0.3 % In 2005 is the smallest increase since. The European economy is facing the risk of the economy down. "BRIC" - China, Russia, India and Brazil are represented by emerging countries, although the economy has been able to maintain relatively rapid pace of development, but faced with higher inflationary pressures. In 2007, China, India and Russia's GDP grew 11.4%, 8.9% and 8.1%, CP1 rose 4.8 percent, 5.2 percent and 9.4 percent, exceeding the central bank set its goal to control. Overall, the emerging countries as a result of sustained economic growth, partially offset by the U.S. economy into recession due to the impact of the global economy to a standstill trend is not clear, however, inflation has emerged on a global scale and become increasingly positive Potential. If the major developed economic weakness continue, to the vicious global inflation and further developments, the current development of the country's economy is still good new is bound to be affected. If so, history has never seen, covering the vast majority of developed and developing countries of the world's specter of stagflation in the near future will still anonymous. Stagflation economy of the reasons The United States in the 1970s have seen economic stagnation, then by the unexpected geopolitical events caused by the "oil crisis" caused. As can be seen by comparing the current global economic situation and the 70s stagflation have similarities, from raw material price increases lead to inflation, leading to a recession. However, the global inflation, the U.S. sub-loan crisis for the fuse, in essence, the excess liquidity caused by the world's major resources caused by rising commodity prices. Oil and food prices. Promote the expansion of the global proliferation of overlapping products Promotion of a shortage of oil prices. From 2001 to 2004, the United States, Europe and other countries in order to cope with the economic recession of the situation significantly lower interest rates, money supply increased economic growth generated a huge demand in emerging countries economic development, increase in oil consumption. But the Organization of Petroleum Exporting Countries have been using the "limited production price" strategy, resulting in a shortage of oil supply, oil prices continued to rise. As the world's oil consumption in the largest energy-based economy, is located at the top of the industry chain, oil prices will have a high demonstration effect, to have a major impact on related industries, will lead to resources on the basis of overall price rise, inflation will push more A high level. International grain prices have also greatly improved. Food prices in part because over the past year because of drought and other natural disasters led to lower production, mainly because many countries carry out bio-fuel development and production, a large number of oil crops cultivation of agricultural crops to reduce the acreage. Food and energy of a high degree of correlation makes the rapid rise of food prices, "miserable" to the overall prices, inflation, a serious threat to the food and raw materials in reliance on a higher economic development of developing countries. 　U.S. loan crisis meeting and the dollar, increased global liquidity surplus From June 2004 to June 2006, 17 times in a row the Federal Reserve raised the federal funds rate, the interest rate from 1% to 5.25%. Yun tightening of monetary policy to break the ever-expanding real estate bubble, leading to the outbreak of the sub-loan crisis. As the global mobility of all of a sudden contraction in the international financial markets have a shortage of credit, the United States and many European countries to carry out the central bank to cut interest rates and capital injection in order to stabilize the financial markets. Although these measures are short-term loan to ease the crisis brought about by the time the liquidity crunch, but to cut interest rates and inject liquidity surplus will allow the recurrence of global energy and commodity prices will inevitably rise. And spread the existence of the international short-term capital flows to emerging countries arbitrage, pushed up asset prices in emerging countries, the birth of the bubble economy. Since 2002, the substantial depreciation of the dollar as the international trade of goods denominated in the currency devaluation as a direct result of the global energy and commodity prices, thus increasing global inflationary pressure. Depreciation of the dollar not only makes the foreign exchange reserves in emerging countries, "shrunk" to reduce the wealth and economic development in emerging countries most dependent on exports, the depreciation of the dollar makes their export prices, reduced demand for importing countries, leading emerging countries to reduce exports, the economy is slowing down . Stagflation in the global economy should be the policy of holding elections .Governments should recognize the global economy faces the reality of the premise, according to their own situation to the development of macro-economic policies. , The economy has begun to face down or risk the country, should first of all from the management of economic stagnation, the economy has begun to promote the country. Government can take expansionary fiscal policy and expand consumer demand, thus increasing production and employment. Economic growth, to promote the consumption level of growth, can afford a measure of inflation. In other words, governments take in the policy should focus on the resumption of economic growth, inflation governance at the same time. On the current situation, the meeting of Chinese and loan crisis has not caused too much influence China's economic development remains relatively stable. However, international oil prices and food prices, China's current high level of inflation. Taken from the central bank's tight monetary policy, in March 2007 from 6 times in a row to raise bank deposit and lending rates to curb the excessive growth of monetary credit, with a view to reducing the rate of inflation. 2008 China should continue to control inflation as a top priority at the same time to prevent big ups and downs in the economy, inflation control and maintain economic stability, to find a balance between growth
In the globalization of the financial crisis, there is no match for the global financial system, rational and effective management of these excess capital, as well as the world's surplus capital flows. U.S. sub-loan crisis is caused in the global financial crisis, when the time when the United States, the European currency launched a powerful mechanism to create, at all costs to save financial institutions, stabilize the market and the economy. The storm is the real battlefield in the United States. Subprime mortgage securitization investment dealers who prefer high-risk, short-term pursuit of profits, high fever of speculation and look forward to the formation of a financial bubble. Fluctuations in the housing market, investor confidence shattered, giving rise to the corporate bonds and asset value to fall, and even in the U.S. stock market into a global financial market panic the drastic devaluation of the affected investors in the world. Although the outbreak of the crisis and trigger point from the United States, but it is not only a U.S. financial system crisis, but the world financial system crisis. 1.1 U.S. government's improper real estate and financial policies for the crisis paved the way for the seeds. Home Ownership was the American dream. In the 1930s the Great Depression, the United States flagging domestic demand, Roosevelt's New Deal of the decision-making is one of the establishment of Fannie Mae, to provide for the national housing finance to help people buy housing, to stimulate domestic demand. In 1970, the United States has set up the premises of the United States, and the size of Fannie Mae fairly. "Housing" is privately held businesses, but it has been enjoying implicit government guarantee of privileges, which issued its bonds with the United States government bonds the same rating. From the beginning of the end of the last century, the loose monetary policy, asset securitization and financial derivatives to accelerate the pace of innovation, "two rooms" hidden guarantee the rapid expansion of the scale, and its direct and security holders of mortgage loans and mortgage loans Securities as collateral from 1990 to 740,000,000,000 U.S. dollars to explosive growth by the end of 2007 to 4.9 trillion dollars. In the rapid development of the business, "two rooms" ignored the quality of assets, which become a sub-loan crisis, "a breeding ground."