Subprime Loan Crisis And Precaution On Real Estate Financial Risks Of China

From 2004 to 2006,Federal Reserve had raised the Federal Fund Rate for 17 times, which made the real estate market more cool. In March 2007, New Century Financial declared bankruptcy, subprime loan crisis broke out in the U.S and turned out to affect the whole world .Many famous international financial institutions were badly hurt in the crisis and some even faced with bankruptcy, hedging funds forced to be liquidated and investment banks proclaiming their losses. Moreover, commercial banks and insurance institutions also suffered great loss and global stock market declined in response. Trust risk aroused by subprime loan, eventually, hurt the economy in the U.S. and the world as a whole .Through the analysis of subprime loan crisis, we can get the enlightenment from it .While we develope real estate finance of our country actively, we should also enhance the awareness of risk prevention ,enhance our ability of risk prevention and ensure our country's stable development of real estate finance .Using data analysis and theoretical analysis, the paper analyzes the structure of the Subprime mortgage loan, and detail introduces the outbreak and envolution of it. Analyzed the influence upon the American economy from different angles . Research the real estate finance risk of China ,by comparing the subprime loan crisis of the United States, find the lack of the risk prevention. Learn the lessons of the subprime loan crisis, address the measures of the risk prevention.The paper using the method which combine the macro-analytical and micro-analytical, rese- arch the causes of the subprime loan crisis, reveal the major reasons are the changes of United states'Macro-economic, the financial innovation and the lack of risk prevention. The assessment agency assess the risk of the securities distorted, assessment of the risk assessment agency securities distortion, research the operational Mechanism of the subprime loan crisis, by using the chart method, and from the two angles of the frame structure and the causal relationship. Analyze the dialectical relationship between the financial innovation and financial regulation.g-ives out the policy proposals of our country'innovative . Though the analysis of the subprime loan crisis, gives out the enlightenment and suggestions for real estate financial risk of China.