Explain the financial crisis by fdjerue7eeu

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									Explain the financial crisis
Definition of financial crisis, also known as the financial turmoil, is a
country or several countries and regions all or most of the financial
indicators (such as: short-term interest rates, monetary assets,
securities, real estate, land prices, the number of business bankruptcy
and collapse of several financial institutions ) sharp, short and ultra-
cycle deterioration.
Type
Financial crisis can be divided into currency crises, debt crises,
banking crisis, the subprime mortgage crisis and so forth. The financial
crisis in recent years has increasingly presented a mixed form of crisis.
Feature
Its characteristics is that people will be more pessimistic about the
economic future based on the Yu Qi, throughout the region a significant
reduction in monetary ±ÒÖµ ³öÏÖ the devaluation, the economy and the
economies of scale to a larger volume of Sun Shi, economic growth by Da
Ji. Often accompanied by large number of enterprises closed down,
unemployment increased and society in general economic depression, or
sometimes even with the social unrest or political turmoil in the State.
Shocked the world in dealing with the issue of the Asian financial
crisis, many important occasions Zhu Rongji said in a firm manner,
"not to devalue the yuan firmly, without increasing the other Asian
countries, the region's crises and difficulties." "We are one
of Asia elements, the same boat, not a position of vulnerability.
"Zhu Rongji represent the image of the Chinese government has won
the respect and praise of the international community. Domestic and
foreign media are generally considered to lead the Chinese people, Zhu
Rongji is the tide of economic reform out of the woods. The best person
to light. (The above excerpts from the "Practical Writing"
magazine 1998 10, "Zhu Rongji's speech on the language
characteristics")
U.S. financial crisis, a total of three stages performed
From the U.S. subprime mortgage crisis caused by Wall Street turmoil, and
now has evolved into a global financial crisis. This process is rapid
development, the number and impact of the huge, it can be said is that
people expected. By and large, can be divided into three stages: First,
the debt crisis, housing loans by the people, not problems caused by debt
service on time. The second stage is the liquidity crisis. These
financial institutions as a result of the debt crisis, some financial
institutions are not able to timely and adequate liquidity to deal with a
creditor realization requirements. The third stage, the credit crisis.
That is, people on the basis of established credit suspicious financial
activities, resulting in such a crisis.
Transmission mechanism of international financial crisis the emergence of
new features:
Financial crisis caused by external factors, the international
transmission of financial crises in recent years had just not a
phenomenon. 1873, Germany and Austria, economic prosperity, attracting
capital to stay in the country, a sudden stop of foreign credit, leading
to difficulties in the United States Jie Kuke company; 1890, Lundunbalin
Brothers investment bank debt payment crisis in Argentina, combined with
the year in October in New York financial crisis, a series of business
failures in London, Barings Bank collapse of almost the same year in
November, but the Bank of England Weilianlide Dyer led consortium
organized under the Guarantee Fund rescue had just been spared, but the
United Kingdom to South Africa, Australia, United States and other Latin
American countries loans dropped affair, resulting in the above countries
and region's economic crisis continued until 1893; the spring of 1928,
the New York stock market began to boom, the drain could have done to
invest in Germany, Latin America's credit source leading to the above
countries and regions into recession. Suspension of payment of foreign
credit is likely to accelerate overseas economic recession, which in turn
led to an impact on all countries. 90 years of the 20th century, along
with the expansion of international hot money, the international
monetary, financial crisis, frequent outbreaks, according to Green and
Maikeerbo Baliyisen more in a study completed in 2001, and now randomly
pick a country's financial crisis probability than a large one times in
1973, the international monetary, financial crisis, infectious has
greatly increased, often shortly after the outbreak of infectious disease
as quickly as the first outbreak of the crisis from a country or region
spread to other countries and regions. Opinion left many words describe
this phenomenon: the Mexican crisis in 1994, the "tequila
effect", "Asian flu", "Russian virus" and so
numerous, and the monetary, financial contagion mechanism The study also
rapidly rising. A variety of crisis transmission mechanisms need to open
capital account and financial market conditions can be achieved to a
large extent, depend on the capital of China's moderate control and a low
degree of openness of financial services market in 1997, survived the
Asian financial crisis But now, as China's economic and financial
situation, although not yet fully open China's capital, the crisis has
been greatly increased risk of infection, shook international financial
markets, the U.S. subprime mortgage crisis sounded the alarm that the
international transmission mechanism of financial crisis, the emergence
of new features.
Broad money, the financial crisis of the international transmission
channels can be classified as non-episodic transmission channels, two
types of sporadic transmission channels, the former refers to the
stability of the pre-crisis and crisis of the existence of transmission
channels are the same; the latter refers only to seen in the channels of
infection after the outbreak of the crisis. As the first transmission
channel from the national or regional economic and financial links
between the real, the crisis spread from the movements in macroeconomic
fundamentals, it is also known as the "real channels," or
"based on the fundamentals of transmission", the main including
trade links and competitive devaluation, the policy adjustment, random
liquidity shocks, aggregate demand channels. Sporadic infection has
nothing to do with economic fundamentals, investors or simply acts of
other participants in financial markets (in particular, irrational
behavior) results, which has "a real infection," "pure
transmission," said, including endogenous liquidity shocks, multiple
equilibria and wake effects, infection and other means of political
influence. However, these transmission mechanisms are often based on
trade links and the "center" country "edge" based on
state investment, because institutional investors from developed
countries have abandoned the pursuit of emerging market assets, asset
quality due to the home country. The U.S. subprime crisis on the impact
on China, the China trade ties with foreign investment mechanism might
not be very critical, but for China's foreign investment and Chinese
companies listed overseas, may be the most important risk of
transmission, and This mode of transmission of the importance of the
crisis will become increasingly improve.
Why the financial crisis
The current financial crisis was prompted by the U.S. housing market
bubble. In some ways, this financial crisis and after World War II every
4 years to 10 years are similar to other crises erupted.
However, between the financial crisis, there are essentially different.
The current crisis marks the end of the era of credit expansion, this
time is based on the dollar as a global reserve currency is based on.
Other cyclical crisis is larger prosperity - an integral part of the
process of depression. The current financial crisis is a super-boom
cycle, the peak of the current round of cycle has lasted 60 years.
Boom - bust cycle, credit cycle usually occurs around the same time, will
always involve a bias or misconception. This is often failed to recognize
the value of collateral between the willingness to lend and there is a
reflexive (reflexive), the relationship cycle. If easy access to credit,
to bring demand and this demand has pushed up real estate values; turn,
which in turn increases the amount of credit available. When people buy
property, and look forward to from mortgage refinancing to profit, then
the resulting foam. In recent years, the U.S. housing boom is a proof.
The super-boom for 60 years, it is a more complex example.
When in trouble when credit expansion, financial authorities have adopted
interventions, (to market) of liquidity into the system and to find other
ways to stimulate economic growth. This created a system of asymmetric
incentives also known as moral hazard, it promoted the expansion of
credit more robust. This system is so successful that people began to
believe that former U.S. President Ronald ? Reagan (Ronald Reagan) said
the "market magic" - and I call it "market
fundamentalism" (market fundamentalism). Fundamentalists believe
that markets tend to equilibrium, while allowing market participants to
pursue their own interests, will be most conducive to common interests.
This is clearly a misunderstanding, because the financial markets from
collapse is not the market itself, but the intervention. Nevertheless,
market fundamentalism became the last century 80's way of thinking
dominates, then the beginning of the financial market globalization, the
United States current account deficit began to emerge.
Globalization, the United States can learn from other parts of the
world's savings, and consumer goods higher than its output. In 2006, the
U.S. current account deficit reached its gross domestic product (GDP) of
6.7%. With the introduction of increasingly complex products and more
generous terms, the financial market to encourage consumers to borrow.
Whenever the global financial system at risk the occasion, the financial
authorities intervened, lending role. Since 1980, monitoring continued to
relax, even to the point exists in name only.
Subprime mortgage crisis led to the developed countries must be re-
estimated the risk financial institutions, distribution of assets, the
next two years, developed countries have reversed back to Chung funds
will strengthen the stability of local financial institutions. This will
lead emerging markets stock prices shrink, currency devaluation,
investment decline, economic slowdown or even recession, which is the
Baltic countries the most vulnerable and India. New financial crisis will
put pressure on China's economic growth, but China is also facing money
"going out" buy the dips corresponding companies integrate
acquisitions, a good time.
Severe cases, the global financial crisis
2007-2008 global financial crisis
Also known as the financial tsunami, credit crisis and Wall Street
tsunami, is a in the August 9, 2007 The financial crisis began to
surface. Since the sub-prime credit crisis, investors began to lose
confidence in the value of mortgage securities, causing a liquidity
crisis. Even if many of the central bank repeatedly injected huge sums of
money to financial markets, can not prevent this financial crisis. Until
2008, the financial crisis spun out of control, and led to a number of
very large financial institutions fail or the government to take over.
60 years the world faces the most serious financial crisis
The current financial crisis was prompted by the U.S. housing market
bubble. In some ways, this financial crisis and after World War II every
4 years to 10 years burst
Issued are similar to other crises.
However, between the financial crisis, there are essentially different.
The current crisis marks the end of the era of credit expansion, this
time is based on the dollar as a global reserve currency is based on.
Other cyclical crisis is larger prosperity - an integral part of the
process of depression. The current financial crisis is a super-boom
cycle, the peak of the current round of cycle has lasted 60 years.
Boom - bust cycle, credit cycle usually occurs around the same time, will
always involve a bias or misconception. This is often failed to recognize
the value of collateral between the willingness to lend and there is a
reflexive (reflexive), the relationship cycle. If easy access to credit,
to bring demand and this demand has pushed up real estate values; turn,
which in turn increases the amount of credit available. When people buy
property, and look forward to from mortgage refinancing to profit, then
the resulting foam. In recent years, the U.S. housing boom is a proof.
The super-boom for 60 years, it is a more complex example.
When in trouble when credit expansion, financial authorities have adopted
interventions, (to market) of liquidity into the system and to find other
ways to stimulate economic growth. This created a system of asymmetric
incentives also known as moral hazard, it promoted the expansion of
credit more robust. This system is so successful that people began to
believe that former U.S. President Ronald? Reagan (Ronald Reagan) said
the "market magic" - and I call it "market
fundamentalism" (market fundamentalism). Fundamentalists believe
that markets tend to equilibrium, while allowing market participants to
pursue their own interests, will be most conducive to common interests.
This is clearly a misunderstanding, because the financial markets from
collapse is not the market itself, but the intervention. Nevertheless,
market fundamentalism became the last century 80's way of thinking
dominates, then the beginning of the financial market globalization, the
United States current account deficit began to emerge.
Globalization, the United States can learn from other parts of the
world's savings, and consumer goods higher than its output. In 2006, the
U.S. current account deficit reached its gross domestic product (GDP) of
6.2%. With the introduction of increasingly complex products and more
generous terms, the financial market to encourage consumers to borrow.
Whenever the global financial system at risk the occasion, the financial
authorities intervened, lending role. Since 1980, monitoring continued to
relax, even to the point exists in name only.
New financial crisis
Global financial crisis appears
Subprime mortgage crisis led to the developed countries must be re-
estimated the risk financial institutions, distribution of assets, the
next two years, developed countries have reversed back to Chung funds
will strengthen local financial institutions
Stability of institutions. This will lead emerging markets stock prices
shrink, currency devaluation, investment decline, economic slowdown or
even recession, which is the Baltic countries the most vulnerable and
India. New financial crisis will put pressure on China's economic growth,
but China is also facing money "going out" buy the dips
corresponding companies integrate acquisitions, a good time.
Worldwide financial crisis clouds are gathering, the next two years, the
world will appear a new type of financial crisis. This will be the
biggest victims of financial crisis, some emerging market countries,
which brought China's economic development challenges and new
opportunities.
Reversal of capital flows will lead to financial crises in emerging
market countries
Why the future world will appear a new financial crisis? This is from the
developed economies and emerging market economies, financial sector
development over the past decade about the basic pattern.
Represented by the United States and Britain developed economies, during
the past decade, benefiting from the trend of globalization, economic
prosperity and continued, but in fact weak foundation for prosperity.
Their savings in these economies relative shortage of bodies, consumer
spending growth, the economic trend of financial technology to enhance,
its focus on the performance of the family use of existing financial
assets, particularly Fangde Chan as collateral, the bank increased its
high loan Lai Zhi Chi's consumption. This pattern is the inevitable
result of the breakdown of consumer credit chain, the performance is to
focus on the U.S. subprime crisis. Subprime mortgage crisis led to U.S.
financial institutions must be re-estimated the costs of financial risks,
but also to enable these financial institutions must re-allocation of
their assets to reduce risk.
On the other hand, emerging market economies, the development process Zai
Zhong Guo Qu years attracted a lot of Zijin developed countries, to
Mexico, Russia, India and Brazil, for example, more than half of its
Zhengquanshichang Shang's funding comes from Yu Guo Wai . Rising foreign
capital not only promote the local asset prices rise, but also to promote
local economic prosperity, but also brought the local currency's
continued appreciation of real exchange rate. This series of process for
these economies, the seeds of the financial crisis, the most prominent
are the two areas: First, the three Baltic states - Estonia, Lithuania
and Latvia, not only appeared in the current account deficit accounts for
more than GDP10%, while financial deficit growing, the trend of rising
domestic prices intensified and that these countries have also adopted
the euro and the linked exchange rate system, this is undoubtedly wrote
the best lead to a financial crisis, the chemical reaction formula.
Another very fragile economy, is India. Although the Indian economy has
maintained an annual average over the past 3 years, 8% more than
Zengzhang Shuai, but the macro of the situation can not be optimistic: a
long time, India's Jing Chang Chu Yu account deficit Zhuangtai,
securities finance more than half from overseas and Tong Huo expansion
rate rise, the central government is long in the red.
Considering the developed countries and emerging market countries, some
of the economic situation, we can draw a conclusion: in the next two
years, the world economy is likely to occur the case of reversal of
capital flows, that is a few years ago the influx from the developed
economies scramble emerging market countries to pursue high-risk high-
return funds, revaluation of risk in the case of developed countries,
have reversed swarming back to the developed countries, to strengthen the
stability of financial institutions in developed countries. The formation
of this trend will undoubtedly bring about a direct impact on developing
countries and emerging market countries ultimately led to the formation
of the financial crisis.
Differences in the new Asian economic crisis
New financial crisis and the Asian financial crisis between
This financial crisis occurred a decade ago with the Asian financial
crisis may be in different forms. Ten years ago the Asian financial
crisis occurred, the main form of balance of payments crisis, when
A large number of Asian debt due for repayment, while the international
financial speculators have run, resulting in insufficient foreign
exchange reserves of these countries, so had to let the currency
devaluation. The form of a new round of financial crises is not
necessarily to the international balance of payments shortfalls as a
symbol, because many of today's foreign exchange reserves in emerging
market countries is relatively high, at the same time as drawing on the
lessons of the Asian financial crisis, these countries are not large-
scale borrowing, only through the stock market to attract a large number
of foreign investment, but that does not mean that emerging market
countries are not exposed to the financial crisis, a financial crisis
caused by a lot of money back Conger led Benguo stock price significantly
diminished, the currency devaluation, resulting decline of local
investment, economic growth is slowing down or even recession for the
appearance of this and a few years ago the economic rise of these
emerging markets, asset price bubble just formed a mirror image
antagonistic. This new type of financial crisis, the fuse is probably the
three Baltic countries, from the Baltic states may transfer to the
Eastern European countries, and then spread to South Asia, including
India, followed by further spread to other emerging market countries.
Liberalization of capital flows can not be blind, fiscal policy must
retain some flexibility
Once this financial crisis, how the Chinese economy is facing challenges?
Possible that part of the performance of foreign capital, as in other
emerging market economies, as have fled to China's international balance
of payments will have some impact, to the Chinese economy some
deflationary pressure, but the current high-speed operation (in fact too
fast operation) of the Chinese economy is not a bad thing. Moreover, this
money will back the situation eased the pressure on RMB appreciation. But
can not be denied that the domestic investment capital back will have
some impact on the scale would lead to a considerable extent, the decline
in China's economic growth. In addition, because economic growth in many
emerging market countries decline, also indirectly through the decline in
demand for Chinese products, affect China's economic growth, these are
the new type of financial crisis on China's economic impact.
We must see the arrival of this new financial crisis on China has a vast
reservoir of "business." In this round of financial crisis,
many emerging markets, asset prices will be greatly diminished, it will
be money to go abroad to invest in China the best opportunity in these
countries, which is of Chinese enterprises "going out",
integrate acquisitions, the most appropriate business good time. To this
end, the Chinese economy and financial sector need to do research in the
project preparation. Speaking from the macro level, macroeconomic
policies must take into account that a new financial crisis, the
possibility of capital flows must be consistently good, not blindly open,
taking into account the possibility of a lot of money and the resulting
exodus pressure. When a time of financial crisis, China's economic growth
rate will inevitably decline, our fiscal policy must retain a certain
flexibility, while continuing to implement sound fiscal policy the
current context, to do projects and funds preparation, once the new round
of financial crisis occurred in the neighboring countries, China can turn
a proactive fiscal policy, to find some financial security and social
benefits of investment projects.
In short, the risk of a new round of financial crisis has arrived, full
speed ahead in China, the wheel must take into account the possible
impact of financial crisis, seize opportunities, mitigate risks, the
economic development of our voyage will be a bright future.
10 Note that the financial crisis
1: Do not quit, do not change jobs, do not change jobs, do not start;
2: a few more backup jobs they can go to the company;
3: do not approach the boss up wages, layoffs are often cut from a high
starting salary;
4: To help a friend pay attention to opportunities for the introduction,
the next to go when looking for work, will have friends to help you;
5: save money, buy bonds, or dual currency deposits, do not buy stocks;
6: send money monthly to their parents, the poor economy, the poorer the
people become well-off;
7: Do not buy a car;
8: the most difficult crisis of the late, yet now, do not think they are
very strong;
9: Do not divorce, do not have children;
10: even if not feeling the crisis, it should bear the day before, with
70% of the money before it ever day.
What we need to do the financial crisis
The word is often said, God closes a door for you, it would also open a
window for you. And I'm saying is that when we closed the door before the
time that we should not panic too much.
Financial crisis in 2008 an unusual year this happened again. It is not
the will of an individual to decide. That is inevitable. When the
financial crisis we should not do many things. But there are always
things we can do.
For example:
1, we can keeping a low profile. In my case, I am a teacher, this job
really is no irritant. I have always wanted to change jobs, and now do
not fit, so go ahead and buy several books to learn to see some related
videos. Boning up on some knowledge. Wait until the economy to turn when
we can immediately shot. After all, the opportunity is for those who are
prepared prepared.
2, the state should do is turn of crisis, and we ordinary people have to
do is to find opportunities in crisis. The first thing has its own value,
whether it itself is a good thing or bad.
When the financial crisis to the past
This should be everyone's most anticipated, and only the end of it as it
happened really not a people's will ah. Hope that Obama will give us a
satisfactory answer it. The U.S. government's 700 billion U.S. dollars
bailout plan, 65% of Americans oppose. The American people that the big
banks Men claim first, the laissez-faire capitalist-type expansion, and
now are asking for trouble to dig a socialist way to save money in the
treasury of the capitalists large banks, the people are unemployment,
credit bankruptcy and lose our house. In addition, there are a number of
international scholars believe that 700 billion U.S. dollars simply not
enough.
Two routes to save the crisis
Every time a crisis within the United States, will have public opinion
will predict whether the United States passed through the war crisis,
there are always people accused of various American presidents waged war
there is no lack of similar cases. The most recent one, is that the
Clinton administration launched against Iraq in 1998, codenamed
"Desert Fox" bombing campaign. Many people believe that the
year on Dec. 17 launched this military attack, is to divert U.S.
attention on the Monica Lewinsky case.
In fact, since the colonial period began, he was often a Western way of
war or conflict through the transfer of domestic crisis, the crisis
between often become hotbeds of war. Specifically, this
"transfer" generally can be divided into two categories, one is
an indirect route, that create conflicts in other regions or provoke a
war, and exterior troubles; the other is the direct route, that is their
own disguise.
What interests the war passed through the crisis? Can be explained from
the following aspects:
Politically, the war would serve the domestic social pressure digestion,
transfer the focus of national attention to the role. Large-scale war
will be reduced to some extent to domestic residents the standard of
living expectations. War is often accompanied by the strengthening of
internal control, such as the Bush administration in launching the
"war on terror", passed the "Patriot Act" and so on,
has significantly strengthened its control over public opinion and social
life. This social control from the other side of the domestic economy can
also be used to prevent the negative impact of the crisis.
Economically, the war mobilization of the domestic economy can be caused
by human situation, the expansion of military-industrial complex, you can
greatly stimulate domestic demand, expanding employment. Military-
industrial complex and its response to the political forces often will
support the Government policy of rearmament.
Pull effect from the military industrial point of view, the current U.S.
military factories produced 130 billion U.S. dollars for each product,
you can pull GDP growth by one percentage point increase of 10 billion
dollars every military production, it can add tens of thousands of jobs .
This is not the military-industrial complex pull effect indirectly taken
into account. More importantly, in the present situation, the production
of military products can directly stimulate the United States most
affected by the financial crisis, the manufacturing industry, such as
cars, airplanes, machinery and other industries, not only have economic
significance, there are important social and political significance .
This kind of military production to stimulate the economy on the premise
that by means of war can finally obtain benefits or no benefits will be
faced with a output of the embarrassing situation. Colonialism and
imperialism in the early period, each dynastic wars and wars between
countries are accompanied by huge war reparations. After World War II,
the war returns to more "subtle" forms, not as in the past,
"naked" See, for example, to grab the object state mineral
resources, occupying the object country market, carve up the country of
foreign assets target.
It should be noted that the United States now at war. However, the war in
Iraq and Afghanistan is clearly worth the wait, especially the proportion
of two wars in the war costs too high, but hindered the process of army
dress up, thereby affecting the interests of the military enterprise.
Even if only from the point of view, the U.S. withdrawal from Iraq is
also motivated. Perhaps the withdrawal of troops from Iraq, and then to
look for a new opponent, more in line with the traditional sense of
"war profiteering" strategy. In the rest of the world, there is
a potential hot spot areas, may become the object of such strategies.
Provoke conflict strategy in other countries can bring greater political
and economic gains. For example, States parties to the conflict depends
on the political power will deepen and large nations is also the major
arms production, and therefore most of the parties to the conflict need
to buy arms to big countries, to higher interest rates will also tend to
borrow a large country, or to lower price to sell their foreign assets
such as cash. In the Russo-Japanese War, Japan has the United Kingdom,
the United States a large number of loans. In almost all previous wars,
there are a number of arms and the sale of lucrative state, the image of
the beneficiaries of war "go down in history."
Consequences of the financial crisis
In the global financial turmoil, are at the cusp of the import and export
industries have been hit the most direct and most serious. First, the
crisis shifted from the financial aspects of the economic level, the
direct impact on exports. U.S. consumer spending accounts for more than
70% of GDP in 2007, the United States consumes about 10 trillion dollars,
China's consumer spending over the same period about 1 trillion. The
short term, the increase in China's domestic demand can not make up the
U.S. economy reduced demand for imports to China. It is estimated that
U.S. economic growth for every 1% drop, China's exports to the U.S. will
drop 5% to 6%. Second, the subprime crisis to further strengthen the
dollar's weak position to accelerate the dollar's depreciation rate,
which reduces the advantage of export products. U.S. Federal Reserve
continue to lower interest rates and inject liquidity for the banking and
capital and tightening of monetary policy in China form a contradiction,
leading to a lot of hot money into China, accelerated depreciation of the
dollar and the RMB appreciation process, thus reducing the price
advantage of Chinese exports, on exports to the U.S. challenge. The role
of these factors, China's exports showed signs of slowing. In the first
half to continue the trend of slowing export growth. Export value from
the view, in the first half rose 21.87 percent, 27.55 percent higher than
the same period in 2007, the growth rate of nearly 6 percentage points
lower; from exports of view, in the first half rose 8.44%, also lower
than the same period in 2007 10.11% growth speed. In addition to reducing
the number of exports, by the financial crisis, overseas corporate
default rates began to rise, export enterprises further deterioration in
the external credit environment. According to Zhejiang branch of China
Export & Credit Insurance statistics, the first 5 months of receipt
of the reported cases of loss the amount of up to 30.34 million U.S.
dollars, up 80%; has paid compensation 8.95 million U.S. dollars, up
525.6 percent. Which claims up 525.6 percent compared to same period last
year, overseas bad debt rate of local enterprises to grow by around 268%.
Specific to the industry, textile industry and other traditional labor-
intensive enterprises affected more seriously. According to Customs
statistics, in September 2008, textile and apparel exports less than in
August nearly 600 million U.S. dollars, only slightly over a year earlier
increase of about 300 million U.S. dollars, exports in September
continued the slight upward trend in August. As the U.S. financial
crisis, dollar-denominated near zero growth of textile exports to the
value of exports denominated in the renminbi exchange rate continued
negative growth, 20% of the textile industry at a loss; the automotive
industry by the U.S. financial crisis, the overall performance of the
doldrums. According to the latest statistics of China Association of
Automobile Manufacturers, 1 August this year, passenger car sales 4.6324
million and 4.5503 million, up by 13.67% and 13.15%, compared with a year
earlier, down 8.32 percentage point increase, and 10.94 percentage
points. From the August car sales, the EU dropped 16% year on year in
North America fell 15.5%, Japan 14.9% decline in auto sales. While
China's domestic car sales fell 5.4%, decreased by 6.0%; shipping
industry has also suffered. As the financial crisis, the world's ship
financing has been a serious, many European banks have suspended shipping
finance business, order the ship but was not significantly increased the
proportion of financing. Some of the ship owner was forced to cancel
orders, such as the abolition of Jinhui Shipping Dalian Shipbuilding
Industry in the order two VLCC orders, Athens OceanautInc canceled nine
orders for bulk carriers 700 million U.S. dollars, South Korea, India,
have also appeared in small and medium sized ship owners cancel order
situation. The regions, the eastern region as the leading export-oriented
economy, the loss is relatively more serious. Such as Guangdong recently
from 20,000 to 30,000 small and large factories closed down, the most
influential is the co-Jun Group's two toy factories closed down, 6,500
staff are facing unemployment, which is affected by the financial crisis
collapse of the Chinese business entities the largest case. On export
countries, China exports to the U.S. the amount of growth was more
evident, the EU and Oceania have not been significantly affected exports,
while Latin America and Africa and other developing regions of the export
value of the strong growth momentum in the first half China, Latin
America, Africa export value growth in more than 40%, much higher than
exports to Europe and North America, the amount of growth. With the
further development of the financial crisis spread to European countries,
China, and even some developing countries in exports will also be
affected, and thus on the overall export growth of China constitutes a
serious challenge.
Financial crisis on the world economy is far-reaching. CASS Institute of
Finance data provided, the current secondary bond market derivative
contracts is amplified to nearly 400 trillion, equivalent to 7 times the
global GDP, high. Japanese media reported that the crisis will lead to
global financial assets shrink 27 trillion U.S. dollars. Former Federal
Reserve Chairman Alan Greenspan has written that: "One day, people
look back today, Keneng will the current financial Wei Ji as the United
States since the end of World War II, the most serious crisis."
Crisis on the real economy, the impact of Xian Yi appeared, the world
economic downturn Ji a foregone conclusion. China is the least damage to
the crisis in developing countries, the direct loss of small, but
indirect effects are discounted. Exports will be reduced, as stimulating
economic growth, one of the troika, its role began to weaken; shaken the
confidence of investors, investment enthusiasm is not high; bank
"reluctance to lend", the domestic liquidity shortage. At
present, the expansion of domestic demand, stimulate consumption in
particular has become a unified government and the academic caliber of
economic adjustment, but only rely on individual economic behavior
(personal and household consumption and business investment) the
promotion of economic development is clearly some "far-
fetched." Practice shows that when the economy is in recession or
expected recession, (China is still in a healthy track, but the economic
downturn) the Government's expansionary fiscal policy than monetary
policy more effective. It should be said, from the recent "anti-
inflation" to today's "capital growth" policy mutation, is
a test of the government's macroeconomic control and regulation and
control capabilities.
Drastic changes in the economic field has brought the fear of change,
they gradually lose their sense of security. In this sense, the arrival
of the massive financial crisis in the U.S. economy as good as
"9.11." Americans are beginning to question the U.S.
government's decision-making capacity, several U.S. news media poll
published on 23 showed that 78% of survey respondents believe that the
current U.S. national road right. Such subtle changes in people, will no
doubt be heated U.S. presidential election in play "power", the
United States by both presidential candidates Barack Obama and John
McCain are sparing no effort to criticize the current government policy,
it also enthusiastic to release to solve the economic difficulties of the
"coup", as is for this part of the electorate.
Direct impact on the financial crisis to personal life. Inflation,
business failures, economic hardship reduces people's ability to pay,
which not only makes more people not from the mortgage, but also greatly
reduce the quality of life for many people. Since last year, we
constantly complain about ordinary Americans, even the daily expenses
have to consider again and again, again and again to reduce.
How to Deal with Financial Crisis
"Financial tsunami" sweeping across the world, Chinese
enterprises should be how to tap huge opportunities in the crisis?
"Ten measures" will help Chinese enterprises to come to the
fore!
Wall Street's tears for "financial tsunami" that swept the
world, triggering a global recession. Right now, a once Wall Street
"financial tsunami" is the impact of the global financial
system, has been the rage in the global capital markets in the United
States, five major Wall Street investment banks have been
"annihilated." Needless to say, the United States suffered a
setback integrated financial strength. Wall Street crisis is how
evolution? The new financial system go? How will our government and SMEs
calmly? Capital Economic and Trade
Securities and Futures Research Centre University Professor Xu Hongcai
told us, "crisis" is "danger" plus
"opportunity." During this period, companies will have to seize
the opportunity to stand out. This course will present you the evolution
of the global financial crisis, the whole process, and the sub-prime
crisis on China's influence, on this basis for the Chinese entrepreneurs
to provide the "Top Ten" but from a strategic adjustment,
policy interpretation, development paradigm shift , financing strategies,
to avoid the financial risks of leading the company assess the situation
while avoiding disadvantages and exploit momentum!
Instructor: Xu Hongcai
Securities and Futures Capital University of Economics and Director of
the Centre, professor of finance; Tsinghua University Institute of
International Engineering Project Management Distinguished Professor;
expert members of the CIIA Securities Association of China; executive
director of the Beijing Municipal Institute of International Finance.
Doctorate in economics in 1996 by Chinese Academy of Social Sciences, has
worked at the Central Bank, securities companies, venture capital firms
and Sinopec Group, on many occasions to the United States, Europe and
Hong Kong to learn financial services. Has published scholarly
monographs: "investment funds and financial development",
"China's capital market research"; editor of "Investment
Banking", "investment fund book" and "Chinese equity
classic case of" where "Investment Banking", "
Investment fund book "is the first domestic-related materials has
far-reaching impact. Visited over 100 cities nationwide and more than 200
listed companies, a number of local government economic adviser and part-
time financial adviser group, thousands of seminars by the majority of
market participants welcome!
"How to Deal with Financial Crisis" Abstract:
First, the course of the evolution of the global financial crisis
Second, the subprime crisis transmission mechanism
Third, the sub-prime crisis on China's influence
4, Interpretation of policy - how to participate in our government a new
system of international finance
Five Chinese companies ten major measures to address global financial
crisis
1, contraction front, prepared for the winter
2, understand the policy-oriented, full use of policy support and
opportunities
3, with the cooperation of financial institutions, opening up new
financing channels
4, examine business strategies, to identify comparative advantages
5, to adjust business strategy and risk management
6, how to seize opportunities M & A
7, how to change the development model
8, training hard, "Strength", the implementation of "lean
management"
9, took the opportunity to Careers
10, battle-back and then read ... ...
Three Chinese companies to address the financial crisis tips
A policy choice
Education staff
Grasp the key
Created their own brand business
Winning move
Innovation Management
ation Management

								
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