Analysis And Learn The Underlying Causes. Sub-prime Crisis

Since the outbreak in 2007,The Subprime Mortgage Crisis spreads from financial market to entity economy, it will not only drag the U.S. economy into recession, but also delay the pace of global economic growth, and make the profound impact on the global economy. The outbreak of the Subprime Mortgage Crisis involves various factors: it relates with both the global economy and the problems of the U.S. economic structure;both the impact on the existing system and the reason for the microeconomic main body;both the historical reasons and the practical factors, So far, the theoretical circles has not been able to agree on the root of the crisis because of its complexity. Conducting in-depth analysis of various factors of the crisis and understanding the role of the factors in the crisis, not only helps to reveal the essence of the Subprime Mortgage Crisis, help China take reasonable measures in order to deal with the current crisis, and even help China find their own economic potential risks to avoid the similar case. Therefore, the in-depth study on the reasons for the Subprime Mortgage Crisis has very important practical significance.Under the context of globalization, whether in the brewing process or in the extent of the impact, the Subprime Mortgage Crisis has the global significance all the time. This means that, if we can not study the crisis in the global economic system, unilaterally emphasize on the role of any aspect of the factors, the results may be biased. Therefore, this paper emphasizes on the global essence of the Subprime Mortgage Crisis, from the perspective of the operation of the global economy, analyzes the microeconomic factors, macroeconomic factors, institutional factors that impact on the crisis, hope that we can find the real reasons for the Subprime Mortgage Crisis.Through the analysis of the inherent defects of subprime bonds, through the behavioral Analysis of mortgage lenders,credit rating agencies, investment banks before the crisis, this article take the inherent defects of subprime bonds and Irrational behavior of the market player as the micro-reason of the crisis; After discuss the root cause and the sustainability of the global economic imbalance, and the analysis of effect of global economic imbalance and America economic imbalance on crisis, the article find that the Subprime Mortgage Crisis have profound macro-reason. The crisis have a inseparable relationship with international financial system which take US dollars as its core now , and closely relative with the imbalance growth in previous stage, the Subprime Mortgage Crisis is the adjustment of global economic imbalances; After taking a analysis on relation between the risk of financial innovation and the financial supervision ,the article conclude that the systematic leaks and the impuissance behavior of U.S. financial regulatory system should take the systematic responsibility of the crisis.On the basis of analyzing the real reasons for the Subprime Mortgage Crisis, this paper further discusses the impact of the crisis on China from the influencing channels, and in terms of the lessons of the crisis, from the macroeconomics, policy regulation, financial innovation and so on, this paper puts forward the Corresponding policy recommendations in terms of China's current economic development.