①American’s ‘low deposit and high consumption’ characteristic
The main reason is the pattern of American’s economy. In a long period, the characteristic of American’s economy is low deposit and high consumption. Especially in current years, the prices of real estate are increasing, and the cost of lending interest rate is very low. This situation made more and more American populace enter to the real estate industry. The optimistic expectation on house prices rising facilitated banks leave no stone unturned to low-line credit customers provide the housing loan. At the same time, local people in America can use the housing mortgage loan for refinancing to get more loans. Since 2001 to 2005, the private homeowner get over one trillion dollars for there daily spending from sell there house, housing loan or mortgage refinancing. The accumulation of American’s capital is negative, more and more citizens encumbered with debts. Spend tomorrow’s money on today’s life is not only become a fashion but also a kind of primary movement.
②The overflow of financial derivatives
The so-called financial derivatives is means with the help from financial intermediary ,the lenders in America change the secondary housing loans into the listed security which can sale and circulate in the markets. In this way, the government continued securitization of mortgages and make sure that this kind of security can trade and circulate in the global economy markets. Which means the housing loan problem is change into a global problem from an area problem.
③The contempt of government intervention
In a long period, American practice the free-market economy, they repose too much confidence in the ability of self-discipline and self-control. Under the thoughts of new-liberalism, the main target of economy policy is trying the best to reduce the government intervention on social economy. They undue stress on the function and effect of the market mechanism and despise the importance of government intervention in the economy and social progress. This is one of the significant reasons for financial crisis.
In my next blog, I will talk about the influence of financial crisis in different aspect.
③The contempt of government intervention
In a long period, American practice the free-market economy, they repose too much confidence in the ability of self-discipline and self-control. Under the thoughts of new-liberalism, the main target of economy policy is trying the best to reduce the government intervention on social economy. They undue stress on the function and effect of the market mechanism and despise the importance of government intervention in the economy and social progress. This is one of the significant reasons for financial crisis.
In my next blog, I will talk about the influence of financial crisis in different aspect.
没有评论:
发表评论