The Impact And The Risks Of The Subprime Crisis

The recent outbreak of the financial crisis raised the profound discussion of the relationship between the government and the market. The general view is that excessive financial market and the relaxation of government regulation is the culprit for the outbreak of the crisis.Global economy t faces enormous threats in the shadow of the financial market crisis. In these backgrounds, it is very meaningful to study the formation of the crisis, to analyze the reasons for the formation .And it is also very important to China which financial market is still in the process of rapid development. It can avoid unnecessary losses in the development of China ' s financial derivatives .In this paper, the characteristics described the process of the crisis and briefly analyzed the impact and the great loss of this crisis up to now after the analysis of the subprime market combined the process and the feature of the asset securitization. The focus of this paper is the analysis of the reason of the subprime crisis and the exploration of the formation mechanism of the crisis. Finally, I tried to provide some policy recommendations of China's mortgage securitization in the precondition of different restrict between China and America.