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Causes and manifestations of economic crisis
The economic crisis is that the stock of money in the market is decreasing and the market is short of money. First of all, in the financial market, the securities market will be depressed because of lack of money, the banking industry will greatly increase the dormant accounts of bad debts because of poor liquidity, and the foreign trade field will shrink sharply because of the currency appreciation caused by the economic crisis, and spread to the futures market. Slow development will spread to the commodity market, leading to unsustainable manufacturing losses;

Let's talk about the causes and processes that led to the economic crisis.

This is a problem that most countries will encounter.

That is to say, a large number of foreign-funded enterprises have withdrawn from a country's domestic market (only one phenomenon, and there are countless channels to reduce the stock of market funds), so he changed his assets into local currency, and then went to the bank to exchange them for foreign exchange (usually dollars) to take away, so that these local currencies existed in banks, and local currencies flowed into banks, reducing the stock of the market. At the same time, the export trade is sluggish (the main reason), and many commodities are overstocked in China. Many funds have become commodities and cannot be realized, which has also caused the stock of money in the market to shrink. These overstocked commodity holders have products but no funds. After a long time, they will increase the price cost and cannot sell it. If they can only reduce the price, it will be a loss. If they lose money, they will go out of business. If they lose their jobs, they will lose their wages. If they lose their wages, their purchasing power will be reduced. So the goods can't be sold, forming a vicious circle. If this phenomenon occurs in all walks of life, if you accumulate too much, it will turn into an economic crisis. Generally speaking, countries will take active measures. On the one hand, they will put money into the market to stimulate purchasing power, on the other hand, they will introduce measures to encourage enterprises to resume production and avoid the danger from expanding and deepening.

When the economic crisis was extremely serious, a large number of factories and enterprises closed down, a large number of workers lost their jobs and living materials were extremely scarce. Prices will soar later. Unemployed workers have no money, can't afford it, and their lives are extremely difficult, which will cause social unrest and uncertainty. At this time, the only thing the country has to do is to do everything possible to resume production. Generally speaking, it is to inject capital into enterprises, quickly start commodity production, and let workers earn money, so that the commodities on the market will increase and gradually form a virtuous circle.

With the depreciation of goods and materials, the currency will appreciate relatively. It is worth noting that depreciation and appreciation are not necessarily synchronized with the emotional interference of the whole society (also affected by the international currency exchange rate), and commodities in a certain field will suddenly plummet, which will lead to the sudden collapse of this field. Currency has appreciated countless times in this field, and savvy businessmen will find the right time to take over and become billionaires in the future.

In countries with poor management, there will be economic crisis leading to inflation, and inflation will also lead to economic crisis, because economic crisis and inflation are two ends of a seesaw balance beam, and management is the fulcrum. Improper measures will lead to serious imbalances, such as Zimbabwe and Venezuela, Argentina and Turkey, Brazil and so on.

Generally, this will not happen in China. First, the management mechanism is sound; Second, there is a large space for coordination in geographical areas; Third, the population base is large and the regulation dimension is deep; Fourth, the industrial categories are complete, which can form the self-circulation of the commodity chain; Fifth, the economy is large, the market capacity is large, and the ability to resist risks is strong. But there will be fluctuations.

Economic crisis and financial crisis are not the same thing. Although they are closely related, they are both two-dimensional problems. Therefore, we have reason to believe that when the economic crisis occurs, although the financial sector has been hit hard, it can still "exchange time for space", that is, quickly transform financial assets and minimize losses. This is the advantage of finance. On the other hand, traditional entities cannot quickly transfer this crisis in a very short time, because a large number of fixed assets are vacant and may become a pile of liabilities.

Therefore, when the economic crisis occurs, it is the traditional industries that pay a huge price. On the contrary, those bad financial speculators can turn bad capital into high-quality capital through rapid transfer, minimize losses, and the most basic thing is strong liquidity.

In addition to the huge impact on traditional industries, there are also areas that are highly dependent on the capital market, such as the Internet and venture capital. Due to the dependence on capital, these areas are weak in resisting economic crisis, such as e-commerce platforms and so on.