Subprime Mortgage Crisis

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A Thesis Submitted In Partial Fulfillment for the Requirements of the Degree of BACHELOR OF ARTS Department of English LIAONING UNIVERSITY OF INTERNATIONAL BUSINESS AND ECONOMICS April 2013 Abstract From the U.S subprime mortgage crisis surfaced, the risk of subprime has being exposed overall, it has become a global financial crisis. It not only made loss on American economic development, but also exploded to other economic fields, such as automotive, transportation, international oil price of the energy sector entities. Financial crisis is cyclical, wich may return at any time, therefore, by discussing the causes and countermeasures of the financial crisis in USA have great significance for China to face the the financial crisis in the future. In this thesis, I will analyze the financial crisis of the U.S., summary the enlightenments to China. In the first part, the introduction of the financial crisis’s background and influences which is analyze by the predecessor. For the second part, the defination and reasons of the financial ,and countermeasures taken by U.S to address the financial crisis. In the third part , analyze the major effects of the measures to address financial crisis and therospect of world financial crisis. At last, the enlightenments to China in copying with future financial crisis. Keywords: financial crisis; countermeasures; enlightenments Table of Contents INTRODUCTION 1 Chapter One LITERATURE REVIEW 4 1.1 Background of the Financial Crisis 4 1.2 Causes of the Financial Crisis 4 Chapter Two AN ANALYSIS OF A TYPICAL CRISIS – SUBPRIME CRISIS 6 2.1 A Brief Introduction 6 2.2 Reasons for Subprime Crisis 7 2.2.1 The Loosening of Credit Conditions 7 2.2.3 The Market Rate Rising 7 2.2.4 The Housing Prices

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