英文论文 关于金融危机对房地产的影响的论文 英文版 完美版.doc

ChapterⅠ Introduction 1.1 Brief Introduction of the Financial Crisis The sub-loan crisis is also called as the subprime mortgage crisis and translated as the subprime lending crisis. It refers to a financial storm that occurred in the United States due to the bankruptcy of the sub-mortgage agencies, the forced closing of the investment funds, and the severe turbulence of the stock market. It led to the crisis in lack of liquidity at the world's major financial markets. The U.S. "Sub-Loan Crisis" began to emerge from the spring of 2006. From August of 2007, it started to sweep through the United States, the European Union, Japan, and other major financial markets in the world. Sub-loan means "subprime mortgage loan". “Sub” means the poor side corresponding to “high” and “excellent”, while in the "sub-loan crisis" it refers to the low credit and low debt-repaying capacity. Subprime mortgage loan is a high-risk and high-yield industry, which refers to the loans offered by a number of lending institutions to the borrowers with poor credit and low income. Comparing to the traditional standard mortgage loans, the subprime mortgage loans demand low levels on the borrowers’ credit history and repaying ability, but its corresponding lending rate is much higher than the normal mortgage loans. Those who are refused on high-grade mortgage loans by the bank for their bad credit history or weak repaying ability may apply for the subprime mortgage loans to buy houses. When the house price is going up, the subprime mortgage loans business is booming. Even if the borrower’s cash flow can not repay the loan, they may obtain re-loans from the value-added real estate to fill the gap. However, when the house price maintains or goes down, there will be a funding gap and then the bad debts. The subprime mortgage loan is a kind of housing mortgages abroad, to supply loans to the people with less income or lower-level credit history. The reason for supplying loans to these people is that