Evolution Of Fictitious Capital In The 1970s .20

The severity of subprime mortgage crisis of America which is originated in September,2007, is far beyond people's expectations, it broaden into a worldwide capitalist financial crisis rapidly. The crisis reversed the momentum of world economic growth.In fact, every historical event is filled with inevitability and possibility. The subprime mortgage crisis of America is the result of risk factors accumulated in the American economy itself. This article follows the principle of the unity of history and logic, after thorough studied and found that the subprime mortgage crisis of America is the corollary of virtual capital evolution after the 20th century 70s of the United States.The first chapter focuses on this core concept of "virtual capital", on the basis of fictitious capital which is discussed by domestic and foreign scholars, the author redefined the concept of virtual capital:virtual capital are financial instruments in the credit system, the virtual style of its proliferation is its essential characteristic.The second chapter focuses on the internal conditions of the virtual capital evolution after the 20th century 70s, mainly included three aspects: money virtualization, credit innovation and the electronic innovation of the finance, and the money virtualization is the key of the virtual capital evolution. The status of U.S dollars in the world is the most important factor in the virtual capital evolution after the 20th century 70s of the United States.The third chapter studies the main forms of evolution of the virtual capital after the 20th century 70s of the United States:asset securitization and financial derivatives. By the way of empirical study, explained that the influence on the American economic structure and value structure by evolution of the virtual capital after the 20th century 70s of the United States. In other words, the economy of the United States has became virtually. The evolution of the virtual capital after the 20th century 70s of the United States advanced financial exacerbation, so virtual capital became globalization, especially institutional investors play tricks in the capital market, which brought risks for the world economy.The final chapter of this article reveals the inner logic and the law of the evolution of the virtual capital. Studied by the dominant forms of virtual capital in the capital history, the inner logic of virtual capital is the same with the money virtualization. Virtual capital rooted in the capitalist system, As long as the capitalist system exists, the virtual capital will be there, just different forms in different times. But in the long term, virtual capital must be disappeared in the history.