Analysis Of The Impact Of The Financial Sector To Economic Development From The Point Of View Of The Sub-prime Crisis

The rapid development of the financial sector plays a very important role in China’seconomic growth, and a large number of financial derivatives derived by the financialindustry in combination with traditional real estate had become the motivation of thesubprime mortgage crisis. The main purpose of this paper is to explore its impact oneconomic development, through the analysis of the development and current status of thefinancial sector, so as to provide ideas for how to promote the healthy and orderly conductof China’s economic development. During the process of discuss, Quantitative analysismethod, Literature analysis and Case study method were used. First, beginning with thestudy of the pros and cons of the financial sector to economic development issues,combined with the analysis of the whole process of the subprime mortgage crisis, thispaper put forward the point of view that "a new era requires a new economic theory tosupport". Furthermore, through the research and analysis of China’s financial industry andreal estate development in recent years, creatively propose that the combination of bothfront---"’mortgage’ is the root to prompt the large number of real estate bubble" thesis.Finally, the risks in the financial industry, it is proposed to dilute the "money worship" anda clear understanding of the nature of financial; strengthen financial regulation to curbexcessive speculation; appropriate and reasonable economic levers; establish a correctconcept of consumption restrictions and resist the influx of "tomorrow’s money";regulating financial innovation in order to service for the entity of economic to deal withand defuse financial risks.