Analysis On Deleverage Of American Economy After The Financial Crisis

The American economic crisis erupted in2008involved the whole world,which was great out of people’s expectation. It had a great impact on the Americanfinancial system as well as the global financial system. The effect was so wide that itterminated the strong increasing trend of world economy. And it led to the decliningof world economy. The American subprime crisis resulted in the financial crisis, butit was the excess use of the financial leverage that gave rise to the crisis. Theleverage has two sides. It can meet the financial need with the developing ofeconomy if it is well used. It can also lead to the increasing of financial risk offinancial institution with excess use and generate crisis to financial institution inAmerican. With the addition of shortage of government supervising on finance,which can result in the disorder of financial market, bring about the financial crisis inAmerica.The proper leverage can promote the developing of economy. In recent years,with the fast development of economy in our country, there are some problemsappears on high leverage ratio in some areas. As the developing and deepening ofworld economy, once a big move appears in the financial market, there will be anincreasing spread of financial risk. That will lead to the expansion of global financialcrisis. Therefore, how to avoid the appearance of financial risk and make good use ofleverage instead of resulting in crisis risk has become the important issue in ourcountry.Altogether there are6chapters in this paper. Chapter one is for the forewordwhich gives a brief introduction on the background information and meaning of the research, including the recent researching situation in and out our country. Chaptertwo analyses deleverage and introduce the connotation and main stages ofdeleverage. Chapter three discusses the reason of deleverage in America.That isAmerican families, government departments and financial institutions’ accustomedexcessive debt. Chapter four analyses the measures in America. It illustrates fromthree aspects: families, government departments, financial institutions. Under thehelp of American governments, the financial institutions quicken the reducing ofrunning of deleverage.The financial departments no longer pursue high risk profit.They reduce the deleverage ratio. American families also take measures to deal withthe crisis. Chapter five makes a comment on the result after order of words. Theassets liabilities ratios of all departments in American are decreasing. Americaneconomy begins to revive. Chapter six tells us the influence on our country and theenlightenment of the usage of deleverage in financial field in China. For our country,we can use the leverage in other countries for reference during the development ofeconomy. But, we should enhance the supervision on financial leverage ratio.