U.S. subprime turmoil in global financial markets.

Editor's Note】 【<P> <EM> more serious is that, as the U.S. subprime mortgage market crisis in the financial sector to expand to other banks to raise lending rates, and generally choose to reduce the number of loans, resulting in major financial markets around showing faint .lack of liquidity crisis. .</ EM> </ P> <P>: http://finance. News, recently, a by the U.S. subprime mortgage market crisis caused by the storm is sweeping across the U.S., EU and Japan, the world's major financial markets. .Bankrupt subprime mortgage lenders, investment funds were forced to close the turbulent stock market, the U.S. and Europe by the Central Bank of positive action. .</ P> <P> housing boom laid the fuse </ P> <P> refers to a number of sub-prime mortgage lending institutions to the credit rating of poor and low-income borrowers of loans. .Caused by the U.S. subprime mortgage market turmoil is the direct cause of rising U.S. interest rates and housing market continued to cool. .</ P> <P> height of the last few years the U.S. housing market boom, the subprime mortgage market has developed rapidly, and even some under normal circumstances is considered to not have the ability to pay the borrower has received home loans, which .for the subprime mortgage market crisis was the formation of potential problems. .</ P> <P> As of June 2006 in two years time, the U.S. Federal Reserve raised interest rates 17 consecutive times, the federal funds rate from 1% to 5.25%. .Interest rates rose sharply increased the repayment burden on home buyers. .Moreover, since the second quarter last year, the U.S. housing market began to cool down significantly. .</ P> <P> as housing prices fall, buyers will be houses for sale or difficult to obtain financing through a mortgage. .Affected by the subprime mortgage market, many borrowers can not repay loans, the subprime mortgage market crisis began to appear and was getting worse. .</ P> <P> along with the U.S. subprime mortgage market crisis, the first to be some impact in the subprime mortgage business lenders. .Since the beginning of this year, many subprime mortgage companies suffered heavy losses, and even forced to file for bankruptcy protection, including the United States, the second-largest subprime mortgage lenders - New Century Financial Corporation. .Also, because lenders will usually packaged into subprime mortgage contracts financial investment products sold to investment funds, so as the U.S. subprime mortgage market crisis, the number of purchase of such investment products are the United States and the European Investment Fund .been hit hard. .</ P> <P> more serious is that, as the U.S. subprime mortgage market crisis in the financial sector to expand to other banks to raise lending rates, and generally choose to reduce the number of loans, resulting in major financial markets around the lack of liquidity show faint .crisis. .</ P> <P>.