theimpactofthesubprimecrisis.docVIP

The impact of the sub-prime crisis Frank, group 4 There is a joke which maybe describe the impact of it (1) To America, it means no house for poor. (2) To the whole world, it means no rich man dares to buy house in America. (3) To china, it means no matter you are rich or poor, you could come to America to buy a house. The impact to America: The dashing bubble of the estate made American economy drop into a huge depression. Each area in the economic sphere suffered huge loss, including stock market, banking, and automobile and so on. A large number of people were unemployed led to so many people lost the repaying capability. According to a data made by American economists, the average price of estate in the main cities of America had depressed 4.1% in 2008. The top five investment bank: Bear Stearns had acquired by jpmorgan. Lehman brothers had announced to bankrupt. Merrill Lynch had also acquired by Bank of America. Goldman Sachs and Morgan Stanley had transfer from investment bank into commercial bank. Besides that, the number of the banks which have bankrupted had exceeded twelve. Owing to the situation of the banks, many large companies had financing problems and suffered a loss during the sub-prime crisis, such as General Motors, Ford and Chrysler. The government had to provide aid to help them go through the crisis. The impact to the world: What happened in the United States was also happened in the world, such as bankruptcy, take-over, stock market shocked, and unemployment. The financial way must be the main way to spread the sub-prime crisis to other countries. As the rest of the world owed too much debt, creditors don’t want to see the United States move towards the bankruptcy, not only can’t abandon the United States government bonds, but even continue to subscribe for additional debt in order to ensure that the United States is not bankrupt. What’s more, in the United States, the consumer goods are far more than its production of products. Americans a