- All Best Essays, Term Papers and Book Report

Inspiration Subprime Crisis

Essay by   •  November 27, 2013  •  Case Study  •  658 Words (3 Pages)  •  1,279 Views

Essay Preview: Inspiration Subprime Crisis

Report this essay
Page 1 of 3

First, the subprime crisis problems reflected the existence of derivative financial product regulation

1, no early to predict crises . Began in the U.S. subprime mortgage crisis ,

Like the previous financial crisis , even though some experts and regulators aware of which

There may be a security risk , but whether it will cause a crisis , will cause more than

Large degree of loss , when the crisis broke out in other related issues and there is no uniform

And a clear understanding of , and therefore only when a crisis occurs , the management really know

Road crisis , so hurry to take some emergency measures. In fact, since the United States

Since the national high-tech bubble burst , the U.S. economy entered the downturn phase , government

The government adopted a series of loose fiscal and monetary policies. Starting in 2001 ,

The Fed cut interest rates more than 20 times , from 715 % to 1% , and keep 1%

The loose monetary policy of low interest rates for two years [ 1 ] . These liberal political

Policy to stimulate the economy at the same time as the outbreak of the subprime crisis potential problems , however,

Unfortunately, only when a crisis occurs , people realized the policy was somewhat


2, the response was not as effective . After the outbreak of the subprime crisis , a great

Getting worse, not only to Bear Stearns , Citigroup and Merrill Lynch

Large U.S. financial institutions involved, but also the wave hit the United Kingdom, Japan ,

France, Germany and other developed countries , and even some of China 's financial institutions have been

Subject to a certain degree of loss . Although the monetary authorities of countries are actively

Shadow to take response measures to inject liquidity , lower interest rates , the subprime crisis

There are still signs of ring for further development . Statistics show that the negative impulse

Strike has been extended to the U.S. consumer market, so that increases the risk of economic deterioration

Large . That is to say , the subprime crisis is far from stopping [ 2 ] . U.S. Government

Liquidity of financial institutions bailout , is short-term



Download as:   txt (4.1 Kb)   pdf (69.5 Kb)   docx (10.5 Kb)  
Continue for 2 more pages »
Only available on
Citation Generator

(2013, 11). Inspiration Subprime Crisis. Retrieved 11, 2013, from

"Inspiration Subprime Crisis" 11 2013. 2013. 11 2013 <>.

"Inspiration Subprime Crisis.", 11 2013. Web. 11 2013. <>.

"Inspiration Subprime Crisis." 11, 2013. Accessed 11, 2013.