The Research On Bank Lengding And High Real Estate Price

Subprime crisis broke out in America in 2007,then it grew to a world-wide finance crisis quickly.So the globle economy started to suffer serious reccession. When we are exploring the causes of the crisis,we have to focus on the excessive bank lending to real estate.At the end of 20^th century,the government relaxed the control of finance.In order to stimulate the economy,more and more financial agencies would like to loan fund to real estate.At last,there was big real estate bubble in this field.When the governers awared of this,they began to highten the interest of bank lending.The bubble dashed.The world came into reccession.By the background of this,I looked back several tipical real estate crisis,and by the help of financial over-supported model,then the conclusion comes out:bank lending is very important to real estate market.At first,with the expassion of credit the price of real estate has to been improved much.The result of continuous price rise is bubble.At last,something that we cannot forecast happens,the bubble dashes.The fund chain of bank disconnects.We have to cut back the funds.The crisis breaks out.