I'll answer you one question at a time.

Inducing reason: generally speaking, it's a process of financial leverage breaking. . I'll explain the lever to you later.

The continuous interest rate reduction by the Federal Reserve has led to a continuous decline in mortgage interest rates, which in turn has made it cheaper to buy a house with loans, lowered the standard of credibility for buyers, and on the surface, the real estate sector has been unprecedentedly prosperous, which has actually given more room for some high-risk financial products and prepared a hotbed for future economic bubbles.

For this innovative, high-liquidity, high-risk way of buying a house, someone always has to pay for it. Some financial institutions package these "bills owed for the house" into various financial products, such as bonds, stocks and the like, which are finally bought by overseas investors through different institutions, including banks and real estate developers. Buffett once said, "If you want to understand these financial products, This is why the United States owes money to various countries in the end.

the impact of the global economy: the "brand-new way of buying a house" in the United States has brought a credit crisis that affects the whole world, and the influence of the United States in the world is also declining, which is reflected in the declining dollar. Moreover, the bubbles in this crisis in the United States have flowed to all parts of the world, which has a great impact on Europe and Asia. Even Europe, which has always disliked collectivism, has realized the impact brought by the crisis of this superpower, and they are United this time than ever before.

What's more, the next era will be dominated by energy, which will be unfavorable for a country with a high living standard like the United States, which gradually relies on imports for energy. Moreover, after this crisis, the world's energy prices will gradually soar, which will be good for developed countries with high consumption, and more difficult for developing countries to cope with.

Impact on China: Now China is the default superpower in the world, because of its huge population and amazing economic growth, especially in recent years when the world economy is generally depressed. Because of the population, China has a huge inertia of economic growth, so economic growth is certain. However, China's reform and opening-up in previous decades was the main reason for economic growth, that is to say, it exported cheap goods to other countries. Therefore, China's financial system is not perfect and mature, and this storm has a great impact on China's foreign economy. Therefore, on the one hand, there is inertia, on the other hand, foreign trade has been hit. Perhaps it is unknown whether China can continue to grow at a high speed in the end.

economic leverage: as mentioned above, in this storm, financial instruments packaged this "house payment" into various financial products, which were circulated everywhere and then packaged. The most important thing is that each institution will owe more money. In this case, it is called leverage, which means that it is as high as leverage, and the money owed is an economic bubble, and more and more. Under this mechanism, the leverage will eventually break, only a matter of time.

hedge fund: for hedge fund

, for example, after buying a stock, the fund manager also buys a put option with a certain price and timeliness. The utility of put option is that when the stock price falls below the price limited by the option, the holder of seller option can sell the stock in his hand at the price limited by the option, thus hedging the risk of stock falling.

For another example, in another kind of hedging operation, the fund manager first selects a certain kind of bullish industry, buys a few optimistic high-quality stocks in this industry, and sells a few inferior stocks in this industry at a certain ratio. As a result of this combination, if the industry is expected to perform well, the increase of high-quality stocks will definitely exceed that of other inferior stocks in the same industry, and the gains from buying high-quality stocks will be greater than the losses caused by short selling inferior stocks; If the expectation is wrong, the stocks in this industry will fall instead of rising, then the decline of inferior stocks will be greater than that of high-quality stocks, and the profit from short selling will be higher than the loss caused by the decline of buying high-quality stocks. Because of this operation method, the early hedge fund can be said to be a form of fund management based on the conservative investment strategy of hedging and preserving value.

after decades of evolution, Hedge Funds have lost their original connotation of risk hedging, and the title of hedge fund is also in name only. Hedge fund has become synonymous with a new investment model, that is, based on the latest investment theory and extremely complex financial market operation skills, making full use of the leverage of various financial derivatives, taking high risks and pursuing high returns.

The above explanation is known to Baidu. I don't know much about hedge funds. Please forgive me.

the government raises the deficit: this means that the government will borrow money to purchase now! Please prepare your own products for bidding! Of course, this is too popular. The government has spent a lot of money on infrastructure construction and public transportation construction.

I don't know if you are satisfied with the above answers.