Study The Relationship Between The Government And The Market In The Context Of The Global Financial Crisis

March 2007, the second-largest sub-prime mortgage lenders - New Century Finance Corporation of the United States was bankrupt. Sub-prime crisis is beginning to show its face to people. In the guidance of the sub-prime, the crisis was collapsed the U.S. mortgage market in a very short time. Followed by the sub-prime mortgage closely, financial derivatives strike the U.S. financial market heavily. The sub-prime mortgage crisis originated in the United States, spread into all over the world in a very short period of time, and developed into a global financial crisis, even impacted on the material production area.Because of the tremendous impact on the world economy, the sub-prime mortgage crisis of the United States has aroused widespread attention at domestic and foreign. Experts and scholars from all over the world have different perspectives on the reason analysis of the sub-prime mortgage crisis. Based on the economic crisis theory of Marx, this article analyzed the emergence and development of the sub-prime, and concluded that the sub-prime and the runaway financial innovation just are embody of the contradiction which between the overproduction and insufficient effective demand and the conflict between the requirements of socialized mass production the production of non-state organizations in the new period. The Sub-prime and the runaway financial derivatives developed in circumstances of the Neo-liberalism which espoused by the United States since the end of the Cold War.Contrast with the beleaguered U.S., China is in thirtieth anniversary of the reform and opening up, and showing a good momentum of development. After compare this two countries, we concluded that the outbreak of the financial crisis declared bankrupt of the neo-liberal, highlight the necessity of the government intervention.The outbreak of the financial crisis proved that government adjust the market is essential. For many years ,experts and scholars focus on the relationship between government and market. On the basis of marginal utility, government and the market should play their respective role. Only in this way, our construction of the market economy can be more perfect.