Overall, the U.S. subprime housing mortgage crisis has profound implications for our country.

Under the conditions of market economy, the market price of assets is affected by the supply and demand of assets. It may be deviated from or even seriously deviated from the intrinsic value of assets, resulting in asset bubbles.

When bubbles appear in the asset market, if the conditions for financing are relaxed, or financial instruments that more conveniently facilitate financing emerge, the asset bubble may expand rapidly, eventually leading to a financial crisis.

The U.S. subprime mortgage crisis has had a great impact on our country's economy.

The so-called subprime loan refers to a subprime mortgage loan, which is a housing mortgage loan for individuals with poor credit status, no proof of income and repayment ability, and other heavy debts.

Subprime mortgages have higher interest rates than prime-rate mortgages for people with good credit because the lender takes on greater risk.

In order to withdraw funds as soon as possible, the institutions that issued these loans packaged these loans into mortgage-backed securities (MBS), asset-backed securities (ABS), etc. Similarly, the interest rates on subprime mortgage bonds are certainly higher than those on U.S. loans.

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Because of their high returns, these bonds have been favored by many investment institutions, including investment banks, hedge funds, and other funds.

But this high return has a big prerequisite, which is that housing prices need to continue to rise.

Main Impact Subprime mortgages began to appear in the mid-1980s.

By the mid-1990s, with the development of information technology and the improvement of rating rules, subprime mortgage loans developed rapidly.

It is estimated that the interest rates on the $600 billion in subprime mortgages issued by U.S. financial institutions in 2006 were low in the first two years, and will be determined based on the London Interbank Offered Rate after two years, which means that borrowers' monthly interest payments are likely to increase.

50% or more.

Therefore, the delinquency rate of subprime mortgage loans is significantly higher than that of prime mortgage loans.

After 2005, subprime mortgage risk began to emerge.

Entering 2006, with the slowdown in economic growth, decline in real estate prices and rise in interest rates, borrowers' burden of repaying principal and interest has increased rapidly.

The risk of non-traditional mortgages increased rapidly, and delinquency rates on subprime mortgages began to rise.

At the same time, the subprime mortgage crisis has affected securities companies, investment companies, mutual funds, hedge funds, commercial banks and insurance companies that hold bonds issued based on subprime mortgage loans. All of these will be affected by the decline in the price of such bonds.

and suffered heavy losses.

The plummeting price of the U.S. stock market quickly spread to stock markets around the world, causing stock prices to fall in various countries around the world. It also affected our country's economy through different channels.

1. Inflationary pressure increases.

In 2008, my country is still facing great inflationary pressure, the price situation is relatively severe, and there is a possibility that structural growth will turn into obvious inflation.

Inflationary pressure mainly consists of the following factors: Since the outbreak of the subprime mortgage crisis, the U.S. government has adopted a loose monetary policy of continuously lowering interest rates in order to avoid economic recession and a significant increase in unemployment. This has caused the dollar exchange rate to depreciate.

This led to an upward adjustment in international commodity prices priced in US dollars; on the other hand, it also further intensified the problem of excess global liquidity. After a large amount of funds poured into the commodity futures market such as grain and oil, it drove the prices of related commodities to rise sharply. At the end of 2007,

The price of mature wheat on the New York Mercantile Exchange (CBOT) reached 885 cents per bushel, a year-on-year increase of 76.6%.

The U.S. Department of Energy predicts that the average international crude oil price will reach US$85 per barrel in 2008, and the average price increase will be about twice as high as in 2007.

Rising oil prices will increase raw material, power production costs and transportation costs in the manufacturing and service industries, thereby driving up CPI and PPI.

Rising inflation risks require the government to adopt more aggressive tightening policies, but concerns about a U.S. economic recession may make it difficult to implement more aggressive tightening policies.

If the United States cuts interest rates and my country raises interest rates, it will increase the pressure on the dollar to depreciate and make my country's macroeconomic control more difficult.

Our country still needs to strengthen market infrastructure, develop direct financing, and spread risks.

2. Impact on my country’s exports The United States is my country’s main export market, and my country’s trade surplus with the United States is one of the main sources of my country’s trade surplus.

The U.S. subprime mortgage crisis will lead to a decline in U.S. consumer spending and investment spending, as well as a decline in gross domestic product, which may in turn lead to a decrease in U.S. imports and a decrease in my country's exports to the United States.

If other conditions remain unchanged, the decrease in my country's exports will lead to a decrease in my country's GDP.

Customs data shows that since August 2007, although my country's export trade has continued to hit highs, the growth rate of exports to the United States has slowed down.

In October, my country's exports to the United States reached 21 billion U.S. dollars, lower than 21.39 billion U.S. dollars in September. The data also showed that my country's exports to the United States increased by 15.5% year-on-year from January to October, and this data from January to September was 15.8%, and 16.7% from January to August.

The growth rate has slowed down significantly.

The profit growth of foreign trade companies may slow down because the slowdown in the world economy caused by subprime mortgages will also lead to a decline in external demand.