The Study Of The American Subprime Mortgage Crisis' Causes And The Influences For China Based On The Perspective Of Securitization

This paper introduced the origins of the American subprime mortgage crisis,such as subprime mortgage ,mortgage-backed securities and collateralized debt obligations, applied Minsky model and moral risk model toanalysis and summarize the causes of the American subprime mortgage crisis.The research indicated that the regulatory authorities of America believed the market self-adjustment and loosened the financial Supervisions.In the end, the American financial market was systemic collapsed. The financial risks would not be evaluatedand controled correctly if financial innovation was abused. The financial innovation would lead to bubble,crisis and disaster because of the persuit of high profits. The American subprime mortgage crisis was just the result of the absue of financial innovation and financial derivatives.Under the weak regulation,the issuing and securitization of subprime mortgage had intrinsic defects. To their objective of profit maximization, the relevant market participants had very serious moral risk owing to information asynllnetry .Be a inevitable result of this, The American financial crisis occurred. This was micro mechanism of the American financial crisis' outbreak.By summaring inspirations of American subprime mortgage crisis,this paper discussed the crisis for China's impact on the real economy through exports, investment and consumption; in terms of the American subprime mortgage crisis on the impact of China's financial system from the Chinese securities market, foreign exchange reserves, financial institutions and mortgage markets .This paper made some policy suggestions for the mortgage market,the improving of financial regulatory system and the precautions of financial innovations' potential risks in China.The mistake of American subprime mortgage crisis would not be not repeated by improving the bank's risk control systems, separating policy and commercial mortgage products, insisting the precautionary principle of financial innovation, improving the financial legislation and regulatory system, taking advantage of the regulation-oriented and principles-based regulations, improving the supervision of credit rating agencies.