World enconomic crisis part 1(Main reason)
By tybtgdh
@tybtgdh (36)
China
April 26, 2010 3:17am CST
Everyone should have some familiarity with the topic i've wrote. Now, the world economic crisis have became the most cocerned problem foreverybody.
The H1N1 have subsided a lot now, but the financial crisisare stillvery tense. Although I myself wasn't affectedthat strongly, but even if you haven't experienced much of it, you'd still clearly feel the obstacles and pressure of a lot of things.
Firstly, I wanted to talk about the main reason of the outbreak.(For referenca, I don't really know much about it)
Key word: Imbalances and fears of competitions.
1. A long term of loopholes causing long-term stock bubble economy.
2. A long term of mortage crisis and thelong-term non performing assets.
3. US as the world's economic hegemony that has shaken US dollar which is the currency no-longer recongized by us.
4. Printing of too much US dollar as a result of serious long-term capital overdrafts.
5.Copied around the world and printing their own tickets, resulting i excess money supply. More serious disorder caused by the world monetary system.
6. Countries in the world conservatism seriously.
7. Duplication, repeat business, copy overlapping votes, overlapping loopholes in sub-prime overlap.
Inflation is caused by depreciation of the dollar as early commodities such as oil prices.
The 'invisible hand' refers to the market mechansim, market mechansim in the financial crisis or the failier of market self-regulation fuction, as a result of leading to a financial crisis intesified, and must be for the government to intervene in the market.
Continues.
look forward to part two and three for the affects and solutions.
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