affected by the slowdown of the U.S. housing market, two hedge funds owned by Bear Sterns, the second largest underwriter of mortgage bonds in the United States, were in trouble and on the verge of bankruptcy because of their failure to invest in the subprime mortgage in the United States, which caused great concern and tension on Wall Street. The creditors of Bear Stearns' funds are out in succession, intending to sell their fund assets

If the auction results of mortgage assets of these investment banks are not satisfactory, hundreds of banks, hedge funds and other investors will be implicated and suffer heavy losses. At present, the default rate of subprime mortgage in the United States and the proportion of foreclosure are rising, and the American real estate market has entered an adjustment stage. The market and economists are worried about the recession of American real estate, and they are worried that the subprime mortgage will penetrate into the American economy, which will drag down the global economic expansion.