Financial Crisis

As we known,there was tremendous shake which impacted America finance,even the whole world,happening in 2008.The shake arose in America resulted in a financial crisis over the world.A number of companies were due to not hold the asset structure in the crisis,they had to declare bankruptcy.

Causes of Financial Crisis

From my viewpoint,the blame for causing the financial crisis is the responsibilities of capitalists and regulators.On the hand,capitalists are tempted profits and aspire high-income excessively.Therefore,large of financial corporations enrich the capital about investments.Besides,they ignore the degree of risk increasingly.Then,when finance shake erupted,these companies could’t have sufficient capitals and strong power to hold the entire firms stable.Thus,the corporations began bankrupting helplessly in the condition.On the other hand,it is one of main resons for the uselessness of regulators.As a regulator,you should be conscientious to deal every financial part.However,regulators is shortage of serious attitude and no coping with financial problems in time.Finally,when regulators realized financial crisis arising,they had not been able to stabilize the economic circumstance.

Consequences of Financial Crisis

The financial condition faces the fierce impacts owing to great influence of the financial crisis.In the stock market,the Dow Jones stock market index and NASDAQ index have fallen 33.84 percents and 40.54 percents since the end of 2008.In addition,stock markets over the world are affected in varying degree,such as Chinese stock market,European stock market,Hong Kong stock market and so on.In the finance,a great deal of firms invest various risk investment and decrease floating capital.Their leverages start losing the balance,hence they is weak and useless for facing the effect of financial crisis.Their endings are none but bankruptcies.For example,Lehman Brother and Washington Mutual both declare bankruptcies.In the international trade,Chinese has the most substantial effects in the financial crisis.In China,many oversea trading companies having no profits or bankrupting are due to the decrease of exports which Europe and the United States need.Up to now,lots of Chinese companies on the coasts don’t still walk away from the effect of financial crisis.

Inside Job

This part is a shadow where there are briberies between companies and regulators.Most of all investors consulted the quality rating before they want to invest.So,it is a key for financing whether the firm owns the level of AA,even AAA.It results that many corporations achieve the high degree from regulators by bribery.As some regulators are greedy,there are so much the fake level of double A and treble A.It is a said that inside job is the most important reason about bringing the financial crisis.

Introspection

Form my perspective,the government should enhance supervision and control the assessment of quality rating strictly.Only the economic environment is transparent and stable,the development of economic is healthy and moderate.

2013/09/29

黄扬 20112211011001

2008年金融危机看法（英文版）