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The "Butterfly Effect" on Wall Street —— The causes of the financial crisis and its influence on China
Causes of financial crisis: Credit expansion and bursting of economic bubble caused by fictitious economy are the main causes of financial crisis.

The financial turmoil on Wall Street is getting worse. The economic recession in Japan and some European countries, the slowdown in the world economy, the spread of pessimism in the market and the drastic changes in the international economic environment have made China's economy face severe challenges and major tests.

Many people think that the financial crisis is far away from us, but it is not. The financial crisis has also had many practical effects on our lives:

First, more enterprises will go bankrupt. Especially some foreign trade enterprises, affected by the foreign financial crisis, suffered losses in exports. Enterprises will close down if they are insolvent, and the closure of enterprises will naturally hurt the people.

Second, enterprises will once again set off a wave of layoffs. When the business is difficult, they will try to reduce the cost and output, and they will make a layoff plan. If a member of a family is laid off, it will affect family life.

Third, jobs are getting harder and harder to find. Enterprises have closed down and laid off employees. Where can we add new employees? Therefore, it will be more difficult for college graduates to find jobs. If not, go to the countryside to farm!

Fourth, wages will not go up again. In the global financial crisis, salary increase will gradually become a very difficult thing, your salary income may be reduced, bonuses will be less and less, or even forgotten. So if you are a salaried consumer, you should pay attention to reducing expenses.

Five, all industries are depressed, and money is precious. Including investment, consumption and trade, will get cold. People will pay more and more attention to cash. Cash will become more and more precious, and money will be more and more regarded as money.

6. Commodity prices will fall. With the decrease of demand, the prices of various commodities will fall, so don't worry about buying a house. It is estimated that domestic house prices will drop by 50% in the next one to three years.

7. Keep your wallet tight and don't "burn the bag". Even if you are rich, even if you are a rich man, don't "burn money", "compete for money" and "be clever". Let's live a good life as a hard life!

Eight, "living within our means" is the best measure. The story of an American old lady and an China old lady is almost a household name. Under the rendering and guidance of the media, many people in China, especially the younger generation, are envious of the "free and easy" American consumption model. The concept of loan consumption and early consumption is almost deeply rooted in people's hearts, and a large number of "card slaves", "house slaves" and "car slaves" have appeared. Now is the time for these "slaves" to reflect!

Nine, the stock market can not be easily solved. The stock market has shrunk dramatically. I once thought that the hope of gold rush in the stock market was dashed, and even the institutions complained bitterly. What can we retail investors expect? Think of the money invested in the stock market as supporting national construction!

Ten, the poor are the hardest. There are many poor people in China. When the financial crisis comes, it is even more difficult to lack money. Fortunately, everyone has had a hard past. Fortunately, the current government will care about the vulnerable groups, so it will pass after a while.

We have decent jobs, but we are always anxious; We have some savings, but we still feel uneasy. Because wallets can't keep up with inflation; Because wages are always fixed, and consumer prices are changing; Because, I am still a house slave, I don't know how the property market will go; I don't know if the stock market is reliable; I don't know what this money can invest; I wonder if the quality of life will decline?

Faced with many problems, our government can't afford to slack off, and has introduced various countermeasures to solve the problems and help the people and major enterprises tide over the difficulties.

Emergency countermeasures:

(1) The government set up a financial crisis prevention team to coordinate the financial policies of the central bank and Hong Kong and share information and resources. At the same time, establish close ties with neighboring countries. (2) Control the securities market to avoid big fluctuations.

(3) pacify the people and control the price increase. Let people trust and support the government.

(4) Reduce short-term foreign debt, that is, you can repay part of foreign debt in advance. This can pay less interest and reduce financial risks.

(5) Postpone stock index futures and Hong Kong stock through train indefinitely to buy time for the government to deal with the domestic economic bubble.

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(6) China's intelligence departments should improve their ability to search economic information in order to serve the country.

(7) Reduce the purchase of US Treasury bonds and switch to other sources, such as purchasing foreign high-quality assets, not limited to the United States.