Analysis Of Economic Crisis On Asset Virtualization From The Perspective Of Comparing American And Japnese Economic Crisis

With the U.S. financial crisis spread, the economic crisis has become more concerned about the rise, especially about the study of asset bubbles. Many scholars analyz the current financial crisis from different perspectives, mainly in the following research perspective:the theeory of excessive consumption,the theory of financial supervision defect theory, the theory of departuring from the real economy and the virtual economy and so on. This article analyzies the eonomic crisis triggered by the bursting of asset bubblesis based on the two asset bubbles in Japan and the U.S. occurred in the performance, impact, the reason,and propose some policys to prevent asset bubbles expanding in china.This paper study economic crisis under the conditions of asset virtualization, and analyze the crisis's characteristics by comparing the bubble ecnomy which were occurred in Japan and the U.S. First the paper discuss a number of concepts and related theories, mainly on the "bubble economy" and the "bubble economy" concept was defined, the virtual capital and the economic crisis overview of the theory is probably done. By comparing the two asset bubbles in Japan and the U.S. we will find a lot of similarities. In this paper, the performance of the bubble, the bubble burst the bubble of the impact and the reasons for the formation of three areas were compared.First of all, the vector of the two country's asset bubble is similary, and are based on assets such as real estate and stocks. When the bubble is in the formation and expansion, the real estate markets and stock markets are unprecedented prosperous, people are immersed in the bubble caused by irrational exuberance and ignore the existence of the risk, simultaneously financial institutions also become a promoter to promote bubble expansion. There are some difference,in Japan the bubble occurred in the only country, but in the United States because of economic globalization in the context of the participation of financial institutions in other countries, so the asset bubble has a greater scale.Second, the impact of the bursting of the bubble is undoubtedly enormous, and cause great negative impact on the economy. Bursting of the bubble between the two is that the Government believe that the speculative excess of assets led to economic overheating and the Government take the policy of raising interest rates makes the asset bubbles burst, the Japanese stock market fell first, followed by the collapse of the real estate market, while the bursting of the asset bubbles in US is due to the the problem of sub-prime loans. Two bubble burst on the economic impact of the transmission mechanism is basically the same. The different parts of the bubble in the United States is that the bursting of the asset bubble also cause great negative impact on other countries especially in Europe.Because The United States and Europe and other countries has a closer ties on ecnomy.Third, fifth chapter is the central part of this chapter, in this chapter we discuss the reasons for the formation of two bubbles from the direct and underlying causes.By comparing the two bubbles we find that the direct cause of the two bubbles can be said to be similary, the only difference lies in the way of financial liberalization. For the loose monetary policy is same, but the relaxation of financial regulation there are still some differences, for Japan could have called on the Government of Japan for financial institutions, indulgence, while the United States because of rapid financial innovation has led to the backwardness of regulation. I think the root causes for both are the same, are both due to the the production of relative surplus of the real economy and the problem of insufficient effective demand in the promotion of conflict.The Government had to take the birth bubble bubble and the promotion of the policy. The difference is that Japan, because the United States passed the crisis led to the intensification of the contradictions of this country, while the United States since the neo-liberal policies adopted since it can be said is always in the regulator in the production of relative surplus of the real economy, and insufficient demand, a times of bubble formation are delayed the arrival of a crisis, but there are always irreconcilable contradictions in the day finally happened, and there proclaimed the demise of neo-liberalism.For this round of financial crisis, China is both a challenge and an opportunity, the financial crisis, international financial and economic system will allow reconstruction, the U.S. super-pattern of a country will no longer exist, but by the world's major countries to formulate and coordinate the financial and economic policies, the establishment of a new international system, order, and to deal with the challenges ahead. And as China's science, sustainable development and harmonious's model of economic development and the model of economic in other developing countries were likely to become the world's dominant model of economic development. Therefore, China should learn experience and lessons from the financial crisisand put the people's interests as the center.At the same time with a scientific, sustainable and harmonious development concept formulate a times of policy measures to protect the financial and economic security, price stability, strengthening of financial derivatives risk management, reduce international dependence on expanding domestic demand and consumption, improving the people's income, reducing the gap between the rich and the poor.