do you still remember,on september 18th,we heard a piece of news that lehman brothers holding incorporation declared it was bankrupt.how can we believe it,because the company ** one of the strongest investing company in the wall street,even in the world.from then on,we hear the financial cr**** here and there,but most of us don’t know why we h**e financial cr****.
before i say something furture,please remember a word sub-prime,which ** the main reason of th** desaster.sub-prime ** a kind of loan that banks offer to the people with poor credit.
let us suppose.in 2007 when the estate ** the most prosper.a lot people think,“wow,th** ** the greatest time to invest on houses,it can brings me a huge wealth.”but they can’t afford it,because they are poor.oh,yes,they can get loans from banks,though they are not sure wether i can pay back.but finally they got sub-primes from the bank.s.
th** year,the market reahes its peak,there are so many overbulding houses,and no person buy houses,so the price begin to fall.yes,now,the mogage ** worth than houses.the poor can’t pay the money to banks any more.the banks stop lending money to them,and th** measure creates d**trust,as a result,the stock market falls dramaticly.
yes,we also h**e other problems.the sub-prime cr****,the bad loans,the bankrupcy of big banks,the dramatic dropping of the stock market,problems of new policies.it’s the interaction effect of above clues that caused the international financial cr****.
though the cr**** ** terrible,don’t put us in a hopeless situation,we can recover from the asia financial cr****,so let us be hopefull,best w**hes to our country,best w**hes to the world!