What do you think of the Sub-prime Loan Crisis?

What do you think of the Sub-prime Loan Crisis?
Aug 20, 2007 21:51
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	Recently, the subprime loan crisis has become a big concern. Due to the subprime loan crisis happened in US, the stock markets in the world have been all affected. For US itself, it is also a big hit to its stock market. Meanwhile, some people say that the crisis may slow down the economic growth of US. More seriously, the recession may occur. Some even say that the subprime loan crisis will trigger the global finincial crisis. On August 18th, Paulson, the minister of treasury said that the tension in the stock markets may last for some time and the situation may become worse. The investors in China's stock market also fear that the subprime loan crisis will give a huge hit to the stock market, especial the A-share market. The spokesman of NBS of PRC said on August 19th that the subprime loan crisis has had little effect on Chinese economy. Experts also said that the domestic financial system suffers less because of the sound control and supervision system. Just as Paulson said the tension will last for some time. No one can say that the crisis has been over. What do you think of the subprime loan crisis? Will it trigger the global financial crisis?

Aug 20, 2007 21:51

ZOEY
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Join Date: Nov 29, 2004
Status: offline

Recently, the subprime loan crisis has become a big concern. Due to the subprime loan crisis happened in US, the stock markets in the world have been all affected. For US itself, it is also a big hit to its stock market. Meanwhile, some people say that the crisis may slow down the economic growth of US. More seriously, the recession may occur. Some even say that the subprime loan crisis will trigger the global finincial crisis.

On August 18th, Paulson, the minister of treasury said that the tension in the stock markets may last for some time and the situation may become worse.

The investors in China's stock market also fear that the subprime loan crisis will give a huge hit to the stock market, especial the A-share market. The spokesman of NBS of PRC said on August 19th that the subprime loan crisis has had little effect on Chinese economy. Experts also said that the domestic financial system suffers less because of the sound control and supervision system.

Just as Paulson said the tension will last for some time. No one can say that the crisis has been over. What do you think of the subprime loan crisis? Will it trigger the global financial crisis?

Aug 21, 2007 21:08

YVONNE
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Join Date: Nov 29, 2004
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The sub-prime loan crisis has spread over the world. The stock markets in Hong Kong, Japan, Brazil, Singapore and other countries have been affected. The governments of these nations admit that the sub-prime loan crisis has has effect on their economy. The Economist said that the crisis will last for some time. Maybe the global financial crisis will break.

The sub-prime loan crisis also impacted China's stock market. The shares dropped and the QDII products also was influenced. Chinese government should learn some lessons from this crisis. The skyrocketing house price is not a good omen. The government should find some methods to stabilize the house price. Meanwhile, the mortgage loan for buying houses should also be regulated. The purpose is to avoid the bad or non-performing loans. There do exisit bubbles in the real estate in China. The government should keep alert on it.

Aug 22, 2007 21:04

ZOEY
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Join Date: Nov 29, 2004
Status: Offline

The sub-prime loan crisis is a warning bell for China, especially for its mortgage market. In order to prevent such crisis, the banks should be more cautious when lending money to the applicants. Individual credit should be examined more carefully. Meanwhile, the down payment also should be increased.

To deal with the real estate, the government has raised the interest rate of personal accumulation fund loan to cool down the market.

Hope the sub-prime crisis could be over very soon.

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