Preliminary Study On The Global Financial Crisis

In early 2007, the U.S. subprime mortgage crisis has gradually evolved into a global financial crisis. So far, its effects have not yet vanished. Many countries, such as Greece, which have a high rate of liability still caused market worries. From the facial aspect, this crisis is caused by the looseness in financial supervision of United State. But from the hypostasis aspect, the crisis is still caused by the basic contradictions of capitalism; although the crisis exposed in the financial sector, it is still overproduction crisis. This paper argues that the U.S. subprime mortgage bubble and financial products bubble which based on the subprime mortgage bubble are essentially represent overproduction. The virtual capital which takes the mortgage securities as the representative has been out of the need of the real economy, and bubble in a high degree is showing the duality of virtual capital .There are many other reasons lead to financial crisis, such as using up the dividend of revolution in information and technology, raising interest cycle squeezed bubble, lax regulation, adventure of financial institutions, etc. On this basis, this paper also discussed the path of financial crisis. Refer to the division of business cycle of Marx and the disscussion on crisis of Hilfer-ding, the financial crisis can be divided into four stages. The first stage, is the brewing of financial crisis, substantial increase in interest rates burst the bubble; the second stage is the explosion and development of crisis, in this stage mainly showing the sub-prime crisis and credit crunch; the third stage is the overall deterioration in the financial crisis, mainly showing liquid crisis; the fourth stage is the recovery of economic. Response to the four stages, each country has taken some appropriate countermeasures, in the development stage, mainly focused on easing mortgage crisis and the credit crisis. In the overall deterioration stage, mainly focused on easing the tension of liquidity . When financial crisis was bottoming out, it turned to take measures to stimulate economic and step up reform. The financial crisis has brought us six enlightenments: First, we should make a profound understanding of the corrupt of capitalism, and unswervingly take the socialist road with Chinese characteristics; second, we should comprehensively implement the scientific concept of development, persist in orientation of common prosperity; third, we should soundly develop the financial industry; fourth, steadily develop the real estate; fifth, further to strengthen the reform and promote development; sixth , is to set the asset prices as an important reference for macro-control.