Study Of Our Country's Financial Security Of Real Estate Based On The Theory About Bubbles Of Real Estate

It's well known that Real Estate is an important industry in most country, so investment of Real Estate is a splendid industry.Our government has been decided to choose the Real Estate, especially the housing Industry to the new rise point of the China's economic and social development. The Real Estate finance is a significant support and guarantee that cannot be substitute for the Real Estate development. Guarding against the risk of Real Estate finance, is not only the request of stabilization and development for the Real Estate industry and the Real Estate finance Industry, but also the very importance condition for all finance industries and economical stabilization and development.The bubbles of Real Estate are that expectations about the price of Real Estate are more valuable. So the investors expect what is true today what it will be tomorrow. And then the price of Real Estate today is higher than the true value of Real Estate, so the bubbles of Real Estate formed. When the bubbles of Real Estate formed and expanded, every investor came to expect the price of Real Estate to continue to rise rapidly. The more the invested, the more money that made. At last bubbles of Real Estate collapsed, the price of Real Estate fell dramatically, and then destroyed the industry of Real estate, financial system and social economy.Chapter 1 describes the basic questions about the bubbles of Real Estate, and compares overbuilding of Real Estate with bubbles of Real Estate, points out the relations and differences between them. Chapter 2, based on large data, discusses the harmful influences of bubble economy upon financial institutions, productivity and society, demonstrating the great damage of the bubble economy. Then, Chapter 3, through analyzing the traits of Real Estate (esp. land) and the external circumstances, talks over the factor of incurring the bubbles, and explains the intrinsic reasons of generation of the bubbles economy in theoretical way. Chapter 4 makes the judgment of whether overbuilding or bubbles towards the Real Estate market nowadays, points out that the Real Estate market contains the great financial risk. And it describes the prominent problems of Real Estate that threaten our country's financial security. At last, Chapter 5, based on the above analysis and the experience of foreign country, study on how to control the risk of Real Estate financial system and make sure it is steady. The solvable methods and valuable advises are put forward.