The 2008 global financial crisis

   In my last blog post, I mentioned that the deregulation adopted by the U.S. Congress in the late 1990s contributed to the financial crisis. I'm going to focus here on the U.S. market and government. Sources: CARPE DIEM: Bank Business Loan Charge-Off Rates Returning to 2007 Levels, Bank Failures Lowest Since 2008 (mjperry.blogspot.com)   According to Barry Eichengreen , the deregulation of financial markets was the root cause of the financial crisis. Excessive deregulation by the securities and exchange commission (SEC) in the United States contributed to the liquidity crisis in global markets in 2008. In 2004, the SEC adopted the Joint Regulated Entity (CSE) program, which allowed many of America's largest investment banks to join the program to evade the SEC's traditional net capital rules and impose greater leverage ratios. But the scheme is a "co-product" of Europe's f inancial group directive . During the financial crisis, the five major investment ba

   In my last blog, I briefly covered the background of the financial crisis of 2008. However, there were many factors contributing to the financial crisis. In this blog, I will continue to talk about one of the causes of the financial crisis - subprime mortgages.   The origins of the subprime mortgage boom were attributed to the increased demand for private-label mortgages and the increase in securities backed by domestic and foreign investors, which also led to a sharp increase in the share of subprime mortgages, from 8% in 2001 to 20% in 2006 , and the share of the securitised subprime mortgage market, from 54% in 2001 to 75% in 2006. Sources: Wikipedia    As a result, the quality of the subprime mortgage market deteriorated dramatically, collapsing around 2007 as market risk increased while markups on mortgages declined over time.    On the other hand,  Subprime mortgages  are primarily characterised by delinquencies and foreclosures after only a few months. The main way the bank

  This is a global financial crisis caused by the bursting of the real estate bubble in the United States. It was not only the largest financial crisis after the Great Depression in 1929, but it also affected most countries in the world. In the run-up to the outbreak of the crisis, the house price in the United States rapidly increased to the highest value of the house price index since 2000 in July 2006. Still, the demand saturation, a price level is not sustainable, consumption growth is no longer sustainable, and the house price bubble bursts. Source: S&P Dow Jones Indices LLC   The investment value of many financial institutions and banks is based on residential mortgage loans. The value of the mortgage depreciates due to the sharp decline in the housing price. Financial institutions and banks find it difficult to discount the mortgage, and their operation ability is reduced. This leads to a lack of confidence in banks and financial institutions, and investors no longer choose