Analysis of the Causes and Effects of the Global Financial Crisis and Lessons Learned

摘要

The Global Financial Crisis since August 2007 was triggered by actual and prospective credit losses on US mortgages. US economy suffered heavy losses in the crisis. Meanwhile the slump on US economy led to a chain reaction all around the world. The recent sharp increases in subprime mortgage loan delinquencies and in the number of homes entering foreclosure raised important economic, social, and regulatory issues. This paper aims to analyze the causes and effects of subprime crisis and also indicate the lessons could be learnt from that. It is divided into five sections. First, a brief introduction of the mortgage crisis is presented. Second, We synthesized the relevant factors which have caused the crisis. Third, we summarized the impacts of subprime mortgage on financial markets. Fourth, we listed several lessons could be learnt from the mortgage crisis. Fifth, the responses from governments and financial institutions are illustrated. Sixth, we recommended some further actions should be taken by the authorities.