U.S. crisis impact on its economy
U.S subprime mortgage crisis will certainly have a negtive impact on its real economy, but this negative impact is far from the last century the Great Depression which is so serious. The question of financial institutions which led by the crisis mainly in the secondary market. This will lead to financial market transactions decline in the value of products ro bust. Of course, the shrinking secondary market lending transactions and the rising interest rates enventually will lead to the rising of interest rates for business and home loans, and credit contraction. This already will make the U.S. economy even worse.
Regarding to the impact of China’s real economy, mainly in the information of Chinese export fight. U.S. crisis will certainly to some extent form combat to the American companies to combat. Meanwhile the U.S. consumer will shrink further. This will lead to the decline in demand for Chinese products. Moreover, the demand from Europe, Asia will also reduce the range of trade. And this will adversely on chinese exports.
