Magic侠女
It seems that the USA is experiencing the same thing Hong Kong experienced in 2003, when the housing bubble burst and the SARS virus spread. Being a small open economy, Hong Kong can do nothing to remedy the situation. The USA is different, it has fiscal and monetary policy on its side. I hope that America will try their best to reverse the trend so that the world economy will grow again. A recession in the US will certainly affect China, because the growth of the Chinese economy is, to a certain extent, export-led and America is the largest market for Chinese goods. If the Chinese economy is affected, it will affect Hong Kong too because every year we have a large number of visitors from China. They also buy houses as well as stocks and shares in Hong Kong. However, it will be impossible to have a recession as severe as the great depression of 1930’s. The reasons are as follows:1. The gold standard has been abandoned. In the past, a dollar was not just a piece of paper, it was also a piece of gold. You could convert it into gold at a fixed rate. Now a dollar is just a piece of paper. Under the gold standard the government lost the freedom to control (or to increase) the money supply. Now the government can print as much money as she likes. The probability of having inflation is much larger than that of having a recession.2. The knowledge that private virtue is public vice. Private individuals still want to save more and spend less during bad times. But governments know that people should spend more in bad times. To encourage people to do so, governments will have deficit budgets by cutting taxes and spend more money than they have.3. Governments learn from history. The experience of the Great Depression leads them to prevent such a tragedy from happening again. The Ph.D. thesis of Ben Bernanke (Chairman of the Federal Reserve of the U.S.) is about the causes of the Great Depression and how to prevent it from happening again.4. There are coordinated measures taken by the main countries of the world, including those of the emerging economies such as China. During the Great Depression, the governments did not take coordinated measures, and one country’s measure was nullified by another country’s measure.
沙沙小小囡
Fear and loathing is spreading as signs mount that the economy is in danger of losing its balance. Industrial production is expected to have dropped in the third quarter, underscoring the plight of troubled auto makers as well as manufacturers of furniture, construction materials and other goods that have been hard hit by the collapse of the housing market. Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away," Ben Bernanke, Fed Chairman, told the Economic Club of New York.Leaders of the world's top economic powers, the G8, said they would meet "in the near future" for a global summit to tackle the financial crisis. The group comprises the United States, Japan, Germany, France, Britain, Italy, Canada and Russia. The current financial crisis began more than a year ago in the United States when lax lending standards on certain home mortgages came home to roost. Foreclosures skyrocketed, mortgage securities soured and financial companies racked up huge losses.
为爱浪漫1
The financial crisis A slump in finance increase since last year was likely to continue through the next whole year,resulting that people's cutting back on spending due to recession fears,which is a period of reduced trade and business activity,and increasing food and gasoline prices.Ever since the financial crisis broke out,hundreds of thousands of people had lost their jobs,and the governments all over the world are now faced with the huge problem of unemployment.People in the west country and Europe are cut short their budget and try to keep a balance between payout and earnings.As to my opinions to the financial crisis,I hold a positive rather than a negative attitude.I think we will together cope with it well,and I believe there is no obstacle that we can't jump over.So I believe there will be a better tomorrow for the world economy.希望对你有帮助。
减肥大胃王
The financial crisis A slump in finance increase since last year was likely to continue through the next whole year,resulting that people's cutting back on spending due to recession fears,which is a period of reduced trade and business activity,and increasing food and gasoline prices.Ever since the financial crisis broke out,hundreds of thousands of people had lost their jobs,and the governments all over the world are now faced with the huge problem of unemployment.People in the west country and Europe are cut short their budget and try to keep a balance between payout and earnings.As to my opinions to the financial crisis,I hold a positive rather than a negative attitude.I think we will together cope with it well,and I believe there is no obstacle that we can't jump over.
绿草泱泱
What Caused The Financial Crisis? I think we can sum up the cause of our current economic crisis in one word — GREED. Over the years, mortgage lenders were happy to lend money to people who couldn’t afford their mortgages. But they did it anyway because there was nothing to lose. These lenders were able to charge higher interest rates and make more money on sub-prime loans. If the borrowers default, they simply seized the house and put it back on the market. On top of that, they were able to pass the risk off to mortgage insurer or package these mortgages as mortgage-backed securities. Easy money! and what went wrong with our financial system? The whole thing was one big scheme. Everything was great when houses were selling like hot cakes and their values go up every month. Lenders made it easier to borrow money, and the higher demand drove up house values. Higher house values means that lenders could lend out even bigger mortgages, and it also gave lenders some protection against foreclosures. All of this translates into more money for the lenders, insurers, and investors. Unfortunately, many borrowers got slammed when their adjustable mortgage finally adjusted. When too many of them couldn’t afford to make their payments, it causes these lenders to suffer from liquidity issue and to sit on more foreclosures than they could sell. Mortgage-backed securities became more risky and worth less causing investment firms like Lehman Brothers to suffer. Moreover, insurers like AIG who insured these bad mortgages also got in trouble. The scheme worked well, but it reverses course and is now coming back to hurt everyone with a vengeance.
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