Research On Repeated Reversal Mechanism Of The U.S. Liquidity During The Evolution Of The Subprime Mortgage Crisis

From the beginning of2007,the U.S. subprime mortgage crisis is the gradual evolution andis developed to be the global financial crisis,in the process of the evolution of the crisis, the U.S.financial market occurs Such a phenomenon that excess liquidity to the reversal of liquiditycrunch even depletion in the short term. Liquidity reversal rooted in the U.S. real estate bubbleprecipitation, Irrational boom of the real estate development spawned a complete liquidity chainwhich linked to U.S. real estate foundation market and their derivative market, the chain is areflection of the U.S. highly financial innovation, but also it confered risk layersaccumulation.Thus, the bursting of the bubble led to the liquidity chain breaking, riskconcentrated outbreak was linkage with the global financial turmoil. After the crisis broke out,the United States took government bailout action including the unconventional rescue measuresin order to help the financial institutions that were in the plight of liquidity,and which triggereda gradual recovery of liquidity.It can be seen that the liquidity of the U.S. financial markets had acomplete fluctuation in the process of the evolution of the crisis,that it changed from surplus toshortage in the short time, and from the shortage to restore spillover, this rare phenomenon isdefined as liquidity repeated reversal.Given the liquidity repeated reversal abstract and rare, the article introduces biology plantcell “plasmolysis and recovery”principle to its interpretation of the visualization.Owing certainrepeated reversal of liquidity cognition, the article analyzes the liquidity repeated reversalmechanism, which includes three parts, first reversal mechanism, second reversing mechanismand the associated spillover mechanism.According to this logic chain, macro analysis in theprocess of chain,layers expanding reflects the research perspective of balance sheet, theunconventional bailout that involves triangular structure.However, in order to better validate themacro theoretical analysis, The paper makes the empirical research on America liquidityrepeated reversal mechanism from the micro perspective,for first reversal, paper makes financial analysis on main body-microcosmic financial institutions along with the value chain, for thesecond reversal,game theory model is used to research on the Government liquidity crisisrescue.Based on the accumulation of theory and Empirical Analysis,paper finally investigatesthe liquidity reversal mechanism on our country,financial reform experimental area and the USand Europe andChina debt " three bonds linkage " within liquidity repeated reversal, combinedwith the mobility of repeated reversal with domestic and international economic and financialhot.