The real culprit is no one person!

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I have listened to many lectures by famous economists on the evolution of financial freedom and risk management. I will give you a more popular answer to your question: Root cause: There are four popular theories at present. 1. Excessive asset liquidity. The real estate industry in the United States around 2000.

It is quite popular, and there is an influx of real estate speculators (these real estate speculators are defined as subprime lenders because their credit rating does not meet the standards).

If real estate speculators don't have enough money, they borrow money from loan companies and use their houses as collateral.

The real estate market is also risky, so in order to share the risk, the loan company found the investment bank, the leading brother in the U.S. financial industry, for financing.

In order to share risks, investment banks issue CDO bonds (with extremely high interest rates) to hedge funds, allowing bond holders - hedge fund investors to share the risks of home loans.

In order to share risks, hedge funds found insurance companies represented by AIG to purchase CDS insurance and created CDS funds. As real estate in the United States soared, CDS funds were quite profitable. As a result, this fund sold like crazy, and various retirement funds and education funds

, financial products, and even banks in other countries have also bought them.

When the time came to the end of 2006, the supply and demand relationship underwent profound changes. American real estate, which had been prosperous for five years, finally fell from its peak, and the food chain finally began to break.

Due to the fall in housing prices, after the loan interest rate expired, first ordinary people were unable to repay their loans, then loan companies collapsed, and hedge funds suffered huge losses, which in turn affected AIG Insurance Company and the banks that made the loans. Citigroup and Morgan successively issued huge loss reports, and at the same time, investment

The major investment banks of the hedge funds also suffered losses, and then the stock market plummeted. People generally lost money, and the number of people who were unable to repay their mortgages continued to increase. Eventually, the Subprime Crisis in the United States nearly became a Prime Crisis.

The door to hell opened by Credit Crunch still doesn’t know how to close it... 2. American greed - abusing financial leverage to make huge profits. Currently, many investment banks use 20-30 times leverage operations in order to make huge profits. Suppose a

Bank A's own assets are 3 billion, and 30 times leverage is 90 billion.

In other words, Bank A uses 3 billion assets as collateral to borrow 90 billion for investment. If the investment earns 5%, then A will earn 4.5 billion in profit, which is 150% relative to A's own assets.

huge profits.

On the other hand, if the investment loses 5%, then Bank A has lost all its assets and still owes 1.5 billion.

The CDS fund has a margin of 5 billion. Because this fund sold like crazy, it issued 500 billion!

If you earn 10%, it will be 50 billion yuan of violence; if you pay 10%, you will have to pay 45 billion yuan as a deposit of 5 billion yuan!

Investment banks hired Nobel economists, Harvard professors, and financial engineers, and used the latest economic data models. After some financial refinement, they produced several analysis reports, prompting financial institutions to use substantial leverage to make huge profits.

, the risk can be seen with your feet!

But there are huge profits, and the greedy Americans decided to take a big shot!

3. Credit is too loose. The booming economy of the United States in the 20th century benefited from the loose credit system. Why?

Because scientific and technological innovation determines the strength of a modern country, the United States' loose credit has prompted a large number of companies to carry out scientific and technological innovation, and a large number of new products and inventions have been launched, which has rapidly increased the economic and military strength of the United States.

It is precisely because of the inertia of this system that a large amount of borrowing has occurred in the United States in recent years. The real estate industry has expanded rapidly, creating a huge economic bubble and leading to the subprime mortgage crisis.

4. The Federal Reserve failed to supervise financial institutions, and Greenspan was the instigator of the financial crisis. As the central bank, the Federal Reserve Board of the United States, referred to as the "Federal Reserve Board".

From 1913 to the present, the Federal Reserve has been controlling the currency and credit of the United States, playing the role of the "borrower of last resort" and using three major levers: open market operations, bank borrowing discount rates, and financial institutions' statutory reserve ratios to regulate the economy.

, aiming to "provide the United States with a safer, more stable, and more adaptable monetary and financial system."

The U.S. financial crisis is of course inseparable from the Federal Reserve's failure to supervise financial institutions.

There is a saying circulating among people in the global financial community: "When Greenspan opens his mouth, investors around the world prick up their ears." "When Greenspan sneezes, investors around the world catch a cold." Because of his real position.

Being too sensitive means that he is destined to be the center of all kinds of storms.

When Greenspan was in charge of the Federal Reserve, continuous interest rate cuts made the cost of borrowing extremely low, which naturally led to a large number of people with limited repayment ability taking out loans. Greenspan was a man, not a god, and he might have made serious mistakes.