Research On America's Real Estate Bubble And Lending Supportive Excess

In 2007 The United States broke out the sub-prime crisis,and this crisis had a serious impact on the United States and the global economy.The sub-prime crisis began from falling house prices,but essentially it was because breakdown of the real estate bubble.Throughout the development of the United States,we can find out that the prosperity of the real estate industry is an important factor to stimulate its economic growth.From the 20th century 30s to the early 21st century,the history of the United States occurred in many previous economic crisis was closely related with the real estate bubble,and lack of credit support would affect the normal development of the real estate industry,but if credit supported to over market will lead to overheating and even the real estate bubble.This paper choose to research on relationship of American's real estate bubble and credit support not only of theoretical significance but also for the healthy development of Chinese real estate market at a certain extent.This paper includes five parts.In the first part,the topics outlined in the background and significance of this subject is introduced,then scholars at home and abroad about the research questions related literature are summarized,and many reachers emphasized the important role of credit in the formation of the real estate bubble.Next the structure and research methods of this paper are introduced,and author's creativity and the main inadequacy are also given.The second part is theory outlined in the real estate bubble and credit support. Then the real estate bubble forming mechanism from the perspective of credit support is given.When real estate loans'improve or the minimum capital requirement decline, the banks have the driving force to expand the scale of real estate loans and this act will further enhance the real estate prices,in turn banks will have optimistic expectations on the housing market because of the prices on the rise,accordingly further expansion of credit supply on real estate happen.In this process,low interest rate policy and financial deregulation for the rapid growth of bank credit played a role in adding fuel to the flames.This process cycle,leading to real estate prices increasing deviation from the actual equilibrium price,and that further leads to the expansion of the bubble.The third part is mainly about the whole real estate bubble burst which marked by the sub-prime crisis outbreak in 2007.Since 2001 the implementation of the Fed's low interest rate policy in the United States has been rising house prices.The real estate bubble was nurtured,however,the rise in house prices hadn't a corresponding support of purchasing power.Then,more than the United States financial institutions in the housing market against the backdrop of prosperity and expansion of housing loans,further speeded up the real estate market's irrational exuberance,accelerated the expansion of the real estate bubble;However,the ultimate real estate in the United States interest rates and loan default rates rising trend against the backdrop of the decline and fall of the real estate bubble burst.Finally,this article on the causes of the real estate bubble credit analytic perspective,pointing out that the relaxation of credit conditions,lending irregularities and neglect loan risk control are the root of a laissez-faire approach.Part four base on the previous theoretical analysis,the use of measurement tools for meeting loan crisis in the United States closely linked to the real estate bubble and credit support for the relationship between the empirical studies carried out.First of all,set up a framework of partial equilibrium in the credit support over the model with the real estate bubble.Model is mainly the existence of speculation in the market conditions,separately for home buyers purchase decision-making and real estate developers investment decision analysis modeling,came to the conclusion that real estate prices and credit the amount directly proportional to the relationship,this relationship is also in line with the actual economic situation.In order to better explain economic phenomena,next to the theoretical formula is derived based on the actual economic situation in the econometric analysis,analysis in 2002 as a credit support to change the real estate price index have an impact on the watershed,the results showed that credit support over the United States before and after,Credit amount on the impact of housing price index coefficient increased from 0.036356 to 0.362381 units units.In other words,after the occurrence of excessive credit support, real estate loans of the United States the impact of housing price index increased significantly.Credit support can be seen over the real estate bubble in the United States are caused by one of the important reasons.Part five combined with analysis of the experience of the United States,For China's economic situation,to draw on the three aspects of Chinese Enlightenment:1,Government should improve internal control measures to strengthen macro-control, and strengthen monitoring and analysis of real estate prices,and improve housing security system.2,the banks to strengthen early warning and risk management mechanism,enhance the capacity of the assets of the screening,careful credit expansion.3,the real estate aspects.Enhance a sense of crisis,a timely adjustment of strategies.