1. Financial crisis refers to the sharp, short-term and super-cycle deterioration of all or most financial indicators of a country or several countries and regions (such as short-term interest rates, monetary assets, securities, real estate, land (price), the number of commercial bankruptcies and the number of financial institution failures)

2. Causes of financial crisis: credit expansion, The bursting of the economic bubble caused by the fictitious economy is the main cause of the financial crisis. The subprime crisis is the fuse. The actual subprime bonds are only $6 billion, which caused such a big financial crisis, all because of following the trend, that is, people's psychological expectations. Herd effect refers to the existence of investors in the market who have not formed their own expectations or obtained first-hand information, and they will change their behavior according to the behavior of other investors. In theory, herding will aggravate market volatility and become the key to the success of leader behavior. In the following cases, baked wheat cake is the leader. In the real economy, subprime mortgage is the leader.

3. From the subprime mortgage crisis to the financial crisis, here is an original case: two people sell baked wheat cake, each selling 2 pieces a day (because the demand for the whole baked wheat cake is only 4 pieces), and the daily output value is 4 yuan. Later, the two discussed and bought and sold 1 pieces each other (A bought 1 pieces from B, and B bought from A). Every day, the trading volume becomes 24 yuan-the virtual economy has come into being

If the price of baked wheat cakes traded with each other is 5 yuan, the trading volume will be 14 yuan per day. At this time, A and B will raise the market baked wheat cakes to 2 yuan, and some people will buy them as soon as they hear that the baked wheat cakes are sold in 5 yuan, but when they see that the market only has 2 yuan.-The bubble economy has come into being

The baked wheat cakes can't be made at once. Just buy long-term cakes. On the one hand, A and B increase the number of baked cakes (up to 1 or more every day), on the other hand, they sell long-term baked cakes, and also start a transaction of issuing baked cakes bonds. Buyers buy them in cash and mortgage loans.-Financing, financial intervention

Some people want to buy them, and they have neither cash nor collateral. A and B issued sub-prime biscuit bonds and bought insurance from insurance institutions.-Sub-prime bonds sowed seeds for the sub-prime mortgage crisis

One day, they found that the purchased biscuits could not be eaten, and they were stored in important places and moldy, so they quickly sold them, even if the price was lower.-The bubble burst

Thus the financial crisis broke out. The biscuit shop laid off employees (as long as 4 biscuits were needed every day. Cooking cake bonds have become waste paper-subprime mortgage crisis

mortgage loans (collateral is worthless) can not be recovered, loan banks are in a liquidity crisis, and insurance companies are facing bankruptcy. -financial crisis

4. In the process from the subprime mortgage crisis to the financial crisis, the financial leverage of financial institutions and the issuance and circulation of financial derivatives played an amplification role

5. The impact on China. The financial crisis spread all over the world. For China, part of the country's foreign exchange reserves were lost, exports were difficult, economic growth slowed down, unemployment increased, people's income fell, consumption decreased, and the market was depressed. In serious cases, it would cause political instability. The impact of the financial crisis on China is not great, because China's economy is separated from the international economy to some extent, China's RMB is strictly managed under capital account, and the impact of international hot money is not great. Now that more than 7 banks in the United States are on the verge of bankruptcy, China's financial system is running well and its economy is growing at a certain speed. At the same time, the country is also stimulating domestic demand by expanding its finance and reducing the deposit reserve ratio by 4 trillion yuan, and now it has lowered the RMB exchange rate. If all macroeconomic measures are implemented effectively, it will take about one year for China to pass the specific impact on China:

(1) The reduction of US consumption affects China's exports. In terms of exports, it can be expected that the external macroeconomic environment of China will become more severe due to the financial turmoil that swept through Wall Street. According to the import and export data of the General Administration of Customs, the growth rate of China's foreign trade exports slowed down obviously in the first eight months of this year. As the United States is the largest export market for China's goods, the growth rate of China's foreign trade exports, which once surged in June and July, will be tested again. Zhang Bin said that the decline in external demand means that the demand of foreign consumers for high value-added products and low value-added products will drop at the same time. In this environment, exporters may have no incentive to innovate technology, but are forced to maintain market share by lowering product prices, which may lead to further deterioration of the terms of trade of China's export enterprises. Import: Under the impact of the financial crisis, the US economy is still likely to decline in the second half of the year, which will lead to the continued decline of its national consumption power and desire, while the investment expenditure will increase. "This is not good news for China's foreign trade exports." If the consumer demand of American nationals decreases and the manufacturing industry gradually recovers due to the increase in investment, the number of goods imported from China will inevitably decrease.

(2) Increase the cost of domestic imports: On the import side, the impact brought by the financial turmoil is closely related to the exchange rate of the US dollar. At present, almost all commodities in the international market are priced in US dollars, and the strength of the US dollar trend determines the price trend of bulk commodities. From the observable data, due to the recent reversal and strengthening of the US dollar, the prices of crude oil, iron ore and other commodities show a downward trend. This is good news for China, which needs a lot of resource products. However, the bankruptcy of Lehman Brothers, the unexpected acquisition of Merrill Lynch, and the "Fannie and Freddie" announced by the US government a week ago, the repeated turmoil in the US financial market has seriously affected the trend of the US dollar exchange rate and the confidence of holders.

(3) The confidence in the domestic financial market has been hit hard.

(4) It has brought direct losses to domestic financial institutions: the direct impact of the bankruptcy of Lehman Brothers on domestic financial institutions includes two aspects: on the one hand, China's financial institutions and investors hold more subordinated bonds, resulting in actual losses; On the other hand, the financial crisis has led to a recession in the United States, which will be transmitted to China. Robert Dowling, former executive editor of the North American edition of Businessweek and a senior visiting scholar at Tsinghua University School of Journalism and Communication, said: (Worried about China's banking industry, which holds a large number of stocks and funds of American financial institutions. According to the bankruptcy documents, the top 3 unsecured creditors of Lehman Brothers are mainly Asian financial institutions, including Japanese Aozora Bank, Central Mitsui Trust, Sumitomo Mitsui Finance, Mizuho Industrial Bank, Trust Central Treasury, and China Bank, a domestic financial institution, which are once again involved. It is reported that Lehman owed US$ 462 million to Japanese Aozora Bank, US$ 382 million to Mizuho Industrial Bank, and US$ 275 million to Citigroup's Hong Kong subsidiary, while Bank of China new york Branch also led the loan of US$ 5 million to Lehman.

6. China's countermeasures

In view of the negative effects of the financial crisis, such as economic contraction and unemployment increase, there are mainly the following policy measures. It should be said that these policy measures are related to the national macroeconomic objectives of economic growth, inflation, unemployment and balance of payments, and will have a positive impact:

(1) Monetary policy has been adjusted in a timely manner since July 28. Reduce the impact of the open market, stop issuing 3-year central bank bills one after another, reduce the frequency of issuing 1-year and 3-month central bank bills, guide the interest rate of issuing central bank bills to decline appropriately, and ensure liquidity supply.

(2) loose monetary policy. In September, October and November, the benchmark interest rate was lowered four times in a row, and the deposit reserve ratio was lowered three times. The decline in the deposit reserve ratio and the benchmark interest rate for loans were aimed at increasing the money supply in the market and expanding investment and consumption.

(3) On October 27th, 28, a 3% discount on the interest rate of the first home loan was implemented; Support residents to buy ordinary self-occupied housing and improved ordinary housing for the first time.

(4) The restriction on the credit planning of commercial banks has been cancelled.

(5) Insist on differential treatment, keeping pressure, and encourage financial institutions to increase loans for reconstruction of disaster areas, agriculture, rural areas and small and medium-sized enterprises.

(6) promoting foreign trade: the import and export industry is the first to be affected, and there are many employees (according to statistics, it has reached 1 million). First, increase export tax rebate; Second, the appreciation of RMB is a means to increase export competitiveness;

(7) foreign economic cooperation and coordination (such as currency swap between China, Japan and South Korea).

The above are the main monetary policies, and other policies

(1) loose fiscal policy: reducing taxes (the reduction of securities transaction tax and the abolition of interest tax have been implemented) and expanding government expenditure (4 trillion yuan to stimulate domestic demand is being implemented);

(2) promoting foreign trade: the import and export industry is the first to be affected, and there are many employees (according to statistics, it has reached 1 million). First, increase export tax rebate; Second, the appreciation of RMB is a means to increase export competitiveness;

(3) reducing the burden on enterprises: adjusting the labor law, etc.

(4) Strengthen public expenditure on social security/medical care, and maintain the stability of social and economic development environment.