Six Signs Of The Financial Crisis And Its Precursors

Six manifestations of the financial crisis
1, Corporate debt heavy burden, banks become more bad debts, financial and debt crises are frequent;
2, The social money supply is too much, the banking business is too heavy, macro-control will become very difficult;
3, Government taxation difficulties, fiscal crisis and financial crisis at the same time;
4, Inflation surrounds the social economy, bubble economies occur, economic fluctuations are frequent and the economy is often hampered;
5, The lack of funds for enterprises has led to difficulties in operation, increasing the rate of bankruptcy and collapse, and frequent mergers and acquisitions, which have reduced the stability of enterprises and increased unemployment, to the detriment of economic and social stability;
6, The unequal international monetary relations have brought heavy burdens to most countries in the world and led to many international economic problems.
The above is the main manifestation of the financial crisis.


Precursors of the financial crisis
1, Economic stagnation, when the economy is weak, it is possible to enter a recession situation, economic recession may lead to financial crisis;
2, Stock market, real estate, property market, exchange rate, etc. There are large bubbles, bubbles mean that they are seriously overvalued, general lightning, it will lead to financial crisis;
3, The government's debt cannot be repaid on time, for example, the state issued the national debt, after maturity cannot be in accordance with the specified time and interest rate commitment, this situation may be a financial crisis. In addition, there are also enterprises and companies that have defaulted on their debts and are simply unable to pay them when they fall due;
4,The disruption of normal banking relationships may also lead to bankruptcy of financial institutions;
5, The massive flight of capital, the country in order to retain this part of the funds will raise interest rates, and after the interest rate increase will bring more impact on the economy.


What retains its value in the financial crisis
1, Gold: gold as a scarce precious metal, as well as it is a hard currency, has the function of storage, in the financial crisis, residents to buy it can withstand the risks of the financial crisis, to achieve the purpose of its value-added;
2, Stocks: when the financial crisis, economic conditions are relatively depressed, the stock market in general plummeted, residents can allocate some stocks in moderation, waiting for the recovery of the market economy, the stock rally;
3,Purchase some real estate: In times of financial crisis, residents can purchase some real estate to offset the risk, for example, purchase a house, which as one of the necessities of life of residents, has a certain appreciation space.