2008 Financial Crisis: Causes and Costs
DOI:
https://doi.org/10.54691/bcpbm.v41i.4447Keywords:
Subprime mortgage; credit default swaps; Lehman Brothers; Dodd-Frank Act; Basel III.Abstract
In 2008, the US financial crisis caused severe shocks to the global economy. In the escalating process of the crisis, the US government launched a series of rescue policies, which not only stabilized the domestic market, but also contributed to the global economic recovery. In recent years, the economic situation is not very optimistic, accompanied by systemic financial risks, reviewing the US financial crisis rescue policy is conducive to better financial reform. This paper will start from the causes of the United States financial crisis to solve the consequences, through the analysis of policy advantages and disadvantages to get the financial risk prevention and management suggestions. Research shows that the quantitative easing monetary policy and low interest rate environment in the United States caused the instability of the real estate market, which increased the generation of subprime loans. In time, the American government's no-kill policy prompted the International Committee of Banking Supervisors to release the third Basel Accord, aimed at stabilizing the financial situation in 2008. Based on this, the article summarizes the following policy enlightenments for our country's financial risk management: strengthen the coordination of monetary policy and fiscal policy; Strengthen international coordination.
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